FTAdviser reported today that Canada Life will seek court approval to take over the Retirement Advantage annuities book, covering around 26,600 policies and £2bn of assets.
Tom Selby, senior analyst at AJ Bell, noted that the High Court decision doesn’t have any impact on policyholders in the short-term.
But he added: “If insurers looking to complete similar deals in the future are unable to do so – and thus are blocked from offloading business and reducing their capital obligations – this could seep through into the rates and charges in other parts of the business.
“More fundamentally, sometimes when you hear of ‘books of business’ being sold off from one company to another the end investor is forgotten.
“This ruling is a stark reminder that there are real people relying on these incomes – incomes they have committed to for life - whose interests must be protected.”
maria.espadinha@ft.com
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