Reliance Life announces proposed acquisition

15 June 2018

Reliance Life announces proposed acquisition of Equitable Life

Reliance Life Limited (“Reliance Life”) is pleased to announce that it has signed an agreement with The Equitable Life Assurance Society (“Equitable Life”) under which it is proposed that Equitable Life and all of its business transfer to Reliance Life Limited.

Under the proposed transaction it is expected that:

  • Equitable Life’s policies will transfer to Reliance Life under a Part VII transfer, expected to complete towards the end of 2019;
  • As part of the process  ‘with profits’ policies will convert to ‘unit linked’ funds and are expected to benefit from an increase in the current 35% capital distribution to a level between 60% and 70%;
  • Conversion from ‘with profits’ to ‘unit linked’ and the transfer to Reliance Life maximises Equitable’s capital distribution, provides policyholders with access to a broad range of funds and secures Equitable a clear path to a well-managed run off;
  • Policyholders will benefit from enhanced security as a result of Reliance Life’s capital policy

The proposed transaction is aligned to Reliance Life’s strategy to acquire open and closed book insurance assets in the UK. 

The decision of Equitable Life to enter into the agreement follows a highly selective process to find a partner with the quality and experience to deliver value to its policyholders and secure their long term wellbeing. The transaction will maximise the capital distribution to members while managing the administrative costs of a life insurance business in run-off.

The proposed transaction remains subject to member, regulatory and Court approvals, and is expected to complete towards the end of 2019.

The parties will now progress a Scheme of Arrangement and Part VII Transfer, which includes a vote by the members of Equitable Life on the conversion of the ‘with profits’ policies, which will be followed by a Court hearing.

It is expected that Equitable Life policyholders will be sent full details regarding the process later this year, with the transfer completing by the end of 2019.

The Equitable Life website can be found here:

WWW.EQUITABLE.CO.UK