Rothesay Assurance Ltd, Re [2016] EWHC 44 (Ch) (15 January 2016)

Rothesay Assurance Ltd, Re [2016] EWHC 44 (Ch) (15 January 2016)

The scheme does not pose a material risk to the solvency of Rothesay Life or to the security of transferring RAL policyholders. Regulatory and internal capital requirements are met, and the transfer is equitable to all classes and generations of policyholders. Objections do not establish real risks; approval is appropriate.

Citation
[2016] EWHC 44 (Ch)
Parties
Transferor: Rothesay Assurance Limited; Transferee: Rothesay Life Limited; Regulator: Prudential Regulation Authority; Regulator: Financial Conduct Authority; Objector: Mr Nicholas Higgins
Jurisdiction
England and Wales
Judgment Date
15 January 2016
Procedural Posture
Insurance Business Transfer Scheme Approval / Final Judgment
Outcome
scheme approved
Legal Topics
Insurance Business Transfer, Solvency Requirements, Policyholder Protection, Corporate Restructuring
Company Law Insurance Law Financial Regulation Insurance Business Transfer Solvency Requirements Policyholder Protection Corporate Restructuring

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Parties

Rothesay Assurance Limited

Transferor

Rothesay Life Limited

Transferee

Prudential Regulation Authority

Regulator

Financial Conduct Authority

Regulator

Mr Nicholas Higgins

Objector

Procedural Posture

Insurance Business Transfer Scheme Approval / Final Judgment

Legal Issues

  1. 1 Whether the proposed transfer scheme adversely affects policyholder security
  2. 2 Whether the scheme meets regulatory and statutory requirements
  3. 3 Whether objections raised by policyholders warrant refusal of approval

Ratio Decidendi

The scheme does not pose a material risk to the solvency of Rothesay Life or to the security of transferring RAL policyholders. Regulatory and internal capital requirements are met, and the transfer is equitable to all classes and generations of policyholders. Objections do not establish real risks; approval is appropriate.

Court Disposition

scheme approved

Orders

  • Court approves the insurance business transfer scheme under section 111 of FSMA.
  • Scheme to become effective at 11.59 pm on 30 November 2015, subject to tax clearances.