Canada Life to take over £2bn annuities

Canada Life to take over £2bn annuities

Canada Life is taking over Retirement Advantage's annuity book after buying the provider in early 2018.

In October, Retirement Advantage - the trading name of MGM Advantage Life – was rebranded as Canada Life, when it announced its intention to transfer the legal ownership of all insurance policies to the Canadian provider.

Canada Life’s acquisition of Retirement Advantage was reported to have added more than 30,000 pension and equity release customers to the company, as well as approximately £2bn of assets under management and a £1.5bn annuity book.

The latest annuity transfer will encompass 26,600 policies with £2bn of assets.

In an email sent today (August 19) seen by FTAdviser, Craig Fazzini-Jones, chief executive of MGM Advantage Life, said that guaranteed annuity – also known previously as enhanced annuity - or flexible income annuity policies will be transferred in their entirety from Retirement Advantage to Canada Life.

As part of this the role of the provider and the insurance funds in which the investment policy is invested will change from Retirement Advantage to Canada Life.

Mr Fazzini-Jones said the deal would take place under Part VII of the Financial Services and Markets Act 2000, which means it will have to be approved by a court.

A directions hearing will take place on September 2, where Canada Life will seek court approval to proceed with the legal transfer.

Shortly after the court hearing the provider will write to policyholders with full details of the scheme and what the proposed transfer means to them, Mr Fazzini-Jones said.

“The changes have no effect on the policy terms and conditions, other than in relation to which company performs specific roles,” he added.

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