Prudential Assurance Company Ltd & Anor, Re [2021] EWHC 3152 (Ch) (24 November 2021)

Prudential Assurance Company Ltd & Anor, Re [2021] EWHC 3152 (Ch) (24 November 2021)

The court sanctioned the Scheme because all statutory requirements were satisfied, the independent expert and regulators found no material adverse effect on policyholders' security of benefits or service standards, and objections based on subjective expectations or general criticisms of matching adjustment were not legally relevant. The court gave full weight to the expert and regulators' opinions and found no significant reason to depart from them.

Citation
[2021] EWHC 3152 (Ch)
Parties
Applicant/transferor: The Prudential Assurance Company Limited; Applicant/transferee: Rothesay Life PLC; Regulator: Prudential Regulation Authority; Regulator: Financial Conduct Authority; Objecting Policyholder: Thomas Copsey; Objecting Policyholder: Kornelia Robertson; Objecting Policyholder: Penelope Howell; Objecting Policyholder: Dr Jay Ginn; Objecting Policyholder: David Mitchell; Objecting Policyholder: Anthony Kell
Jurisdiction
England and Wales
Judgment Date
24 November 2021
Procedural Posture
Part VII Insurance Business Transfer Scheme Sanction Application / Sanction Hearing After Remittal From Court of Appeal
Outcome
Scheme sanctioned
Legal Topics
Insurance Business Transfer, Part VII FSMA Scheme, Solvency II, Policyholder Protection, Judicial Discretion in Sanctioning Schemes
Financial Services Law Insurance Law Company Law Insurance Business Transfer Part VII FSMA Scheme Solvency II Policyholder Protection Judicial Discretion in Sanctioning Schemes

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Parties

The Prudential Assurance Company Limited

Applicant/transferor

Rothesay Life PLC

Applicant/transferee

Prudential Regulation Authority

Regulator

Financial Conduct Authority

Regulator

Thomas Copsey

Objecting Policyholder

Kornelia Robertson

Objecting Policyholder

Penelope Howell

Objecting Policyholder

Dr Jay Ginn

Objecting Policyholder

David Mitchell

Objecting Policyholder

Anthony Kell

Objecting Policyholder

Procedural Posture

Part VII Insurance Business Transfer Scheme Sanction Application / Sanction Hearing After Remittal From Court of Appeal

Legal Issues

  1. 1 Whether the statutory requirements for sanctioning an insurance business transfer scheme under Part VII FSMA are satisfied
  2. 2 Whether the Scheme will have a material adverse effect on the security of benefits or service standards for transferring policyholders
  3. 3 Whether the court should give full weight to the independent expert and regulators' opinions

Ratio Decidendi

The court sanctioned the Scheme because all statutory requirements were satisfied, the independent expert and regulators found no material adverse effect on policyholders' security of benefits or service standards, and objections based on subjective expectations or general criticisms of matching adjustment were not legally relevant. The court gave full weight to the expert and regulators' opinions and found no significant reason to depart from them.

Court Disposition

Scheme sanctioned

Orders

  • The insurance business transfer scheme is sanctioned under section 111(1) FSMA.
  • Transferred policies and associated liabilities are vested in Rothesay Life PLC as of the effective date.