Rothesay (insurer): Difference between revisions

UK pension insurer

Rothesay (formerly Rothesay Life) is a United Kingdom pension insurer that focuses on securing the liabilities of defined benefit pension schemes through bulk annuity transactions and the acquisition of in-force annuity portfolios. It was founded in 2007 as a subsidiary of Goldman Sachs and is now owned by the Singapore sovereign wealth fund GIC and the US insurer MassMutual.^[3][4]

As at 31 December 2024 the group reported £70.8 billion of assets under management and a group Solvency Capital Requirement coverage ratio of 261 percent.^[5][6]

History

Rothesay was founded in 2007 by Addy Loudiadis as a subsidiary of Goldman Sachs. Its first transaction was a buy-out of Rank Group’s £700 million pension scheme in 2008.^[7]

In 2017 funds managed by Blackstone and GIC together with MassMutual agreed to acquire Goldman Sachs’ stake in Rothesay.^[8] In 2020 Reuters reported that Blackstone sold its remaining 36% holding to GIC and MassMutual which then became equal shareholders.^[9]

In 2019 Rothesay agreed to take on Prudential’s £12 billion annuity book. The High Court initially refused to sanction the transfer but the Court of Appeal later overturned that decision which allowed the transaction to proceed.^[10][11]

In March 2024 Rothesay agreed to acquire Scottish Widows’ £6 billion bulk annuity portfolio. The High Court approved the transfer on 14 May 2025 and completion took effect on 11 June 2025.^[12][13]

Operations

Rothesay focuses on pension risk transfer in the United Kingdom. Its activities include bulk purchase annuities written as buy-ins and buy-outs, the acquisition of in-force annuity portfolios from insurers, and occasional acquisitions of insurance companies. The group reports that it reinsures a high proportion of longevity risk and invests mainly in government securities, corporate credit, infrastructure lending and secured lending.^[14]

Market analyses describe Rothesay as one of the largest participants in the UK bulk annuity market, with significant volumes written in recent years during a period of strong funding for defined benefit schemes.^[15][16]

Financials

At 31 December 2024 the group reported assets under management of £70.7 billion and a group Solvency Capital Requirement coverage ratio of 261 percent. For the six months to 30 June 2025 Rothesay Life plc reported assets under management of £69.5 billion, adjusted operating profit of £347 million and an SCR coverage ratio of 266 percent.^[17][18]

Ownership and structure

Rothesay Limited is the group holding company. Rothesay Life plc is the principal regulated insurance subsidiary. The group is owned by GIC and Massachusetts Mutual Life Insurance Company. Regulatory filings and market updates indicate the two investors hold broadly equal interests, with GIC a slight majority following a 2025 reinvestment.^[19][20]

Credit ratings

As of 2025 Rothesay Life plc is rated A+ (Insurer Financial Strength) by Fitch and A2 (Insurance Financial Strength) by Moody’s.^[21][22][23]

References