CMS advises Rothesay on £6bn bulk annuity portfolio acquisition

International law firm CMS has advised Rothesay on the acquisition of a Scottish Widows £6bn bulk annuity portfolio from Scottish Widows, a member of the Lloyds Banking Group.

The transaction is initially structured as a reinsurance for the in-force bulk annuity portfolio, with an insurance business transfer scheme process to follow in 2025.  The portfolio covers the pension benefits of c.42,000 people.

Rothesay has over £60 billion in assets under management and pays out, on average, £2.5 billion in pension payments each year. It was purpose-built to secure the future for its policyholders and is trusted by the pension schemes of some of the UK’s best-known companies to provide pension risk transfer solutions along with award-winning levels of customer service.

CMS Partner Owen Ross commented: “We are delighted to have advised Rothesay on this acquisition. This transaction demonstrates our deep sectoral expertise in pensions de-risking, life insurance and structured reinsurance, all of which are necessary to successfully implement a transaction of this nature. We look forward to working with the team on the Part VII scheme over the coming months.”

The Rothesay legal team was led by Lorna Tennent and was supported by a CMS team led by Owen Ross and James Parker.