GIC and MassMutual purchase Blackstone's 36% holding in Rothesay Life

An agreement has been reached for the purchase of Blackstone’s 36 per cent holding in annuity provider Rothesay Life by GIC and Massachusetts Mutual Life Insurance Company (MassMutual).

The transaction, which values Rothesay at £5.75bn, will result in the two purchasers becoming equal 49 per cent shareholders, having both initially invested in the company back in 2013.

Since then, Rothesay Life has grown its assets under management from £7.5bn to £56bn, while 2019 saw the company achieve a record £16.3bn of new business underwritten before the company reported “continued strong momentum” in the first half of 2020.

The transaction’s completion remains subject to regulatory approvals.

Rothesay Life chief executive, Addy Loudiadis, said: “I am delighted that GIC and MassMutual will be substantially increasing their investment in Rothesay. This is a strong expression of confidence in the company and provides the business with exceptional long-term support from two of the world’s leading institutional investors.”

Blackstone senior managing director, Qasim Abbas, commented: “Rothesay is now recognised as a market leader in de-risking solutions having executed over £16bn of new business in 2019, the largest ever total for a UK bulk annuity insurer, as well as the successful expansion into attractive new asset classes.

“MassMutual and GIC are the natural long-term holders for Rothesay and we wish both the company and the shareholders continued success going forward.”

GIC chief investment officer of private equity, Yong Cheen Choo, said: “We have confidence in Rothesay’s long-term prospects given its highly capable management team and strong risk management practices.

“We look forward to working closely with MassMutual to add value to Rothesay, as the company continues to strengthen its leading position in pension de-risking solutions.”

MassMutual chief investment officer, Tim Corbett, added: “We are pleased to build on the strong, long-term relationship we have established with Rothesay Life, which has experienced tremendous growth, has a proven business model and strategy and is well-positioned in the market. We are looking forward to this next chapter of our partnership.”

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