GIC & MassMutual to acquire Blackstone’s shareholding in Rothesay Life

Rothesay Life (“the Group”), the largest specialist annuity provider in the UK, is pleased to announce that an agreement has been reached by GIC (“GIC”) and Massachusetts Mutual Life Insurance Company (“MassMutual”) with funds managed or advised by Blackstone’s Tactical Opportunities business (“Blackstone”) to acquire Blackstone’s 36% shareholding in Rothesay Life.

Under the terms of the transaction, GIC and MassMutual will each become equal 49% shareholders. The transaction values the Group at £5.75bn. The deal comes after a record £16.3bn of new business underwritten in 2019 and continued strong momentum by Rothesay Life in the first half of 2020. Blackstone, GIC and MassMutual have been shareholders in Rothesay Life since 2013. Since their initial investment, Rothesay Life has grown its AUM from £7.5bn to £56bn. Today, the Group secures the pensions of over 800,000 people and is trusted by some of the UK’s best known companies to provide pension solutions.

Completion of the transaction is subject to regulatory approvals.

Addy Loudiadis, Chief Executive Officer of Rothesay Life, said: “I am delighted that GIC and MassMutual will be substantially increasing their investment in Rothesay. This is a strong expression of confidence in the company and provides the business with exceptional long-term support from two of the world’s leading institutional investors. Rothesay will continue to differentiate itself by providing a full range of solutions on a large scale, as well as by taking full advantage of strategic prospects with a value and risk-driven approach to underwriting.

She continued “I am very grateful to Blackstone for their invaluable partnership over the last seven years which has been instrumental in helping us develop and grow the business into a market leader.

Qasim Abbas, Senior Managing Director at Blackstone, said: “The transformational growth of the business since our initial investment [in 2013] has been outstanding. Rothesay is now recognised as a market leader in de-risking solutions having executed over £16bn of new business in 2019, the largest ever total for a UK bulk annuity insurer, as well as the successful expansion into attractive new asset classes. MassMutual and GIC are the natural long-term holders for Rothesay and we wish both the company and the shareholders continued success going forward.”

Yong Cheen Choo, Chief Investment Officer of Private Equity, GIC, said: “We have been shareholders in Rothesay since 2013 and are pleased to have helped the company grow into the market leader it is today. We have confidence in Rothesay’s long-term prospects given its highly capable management team and strong risk management practices. We look forward to working closely with MassMutual to add value to Rothesay, as the company continues to strengthen its leading position in pension de-risking solutions.”

Tim Corbett, MassMutual Chief Investment Officer said: “We are pleased to build on the strong, long-term relationship we have established with Rothesay Life, which has experienced tremendous growth, has a proven business model and strategy and is well-positioned in the market. We are looking forward to this next chapter of our partnership.”

Rothesay Life (“the Group”), the largest specialist annuity provider in the UK, is pleased to announce that an agreement has been reached by GIC (“GIC”) and Massachusetts Mutual Life Insurance Company (“MassMutual”) with funds managed or advised by Blackstone’s Tactical Opportunities business (“Blackstone”) to acquire Blackstone’s 36% shareholding in Rothesay Life.

Under the terms of the transaction, GIC and MassMutual will each become equal 49% shareholders. The transaction values the Group at £5.75bn. The deal comes after a record £16.3bn of new business underwritten in 2019 and continued strong momentum by Rothesay Life in the first half of 2020. Blackstone, GIC and MassMutual have been shareholders in Rothesay Life since 2013. Since their initial investment, Rothesay Life has grown its AUM from £7.5bn to £56bn. Today, the Group secures the pensions of over 800,000 people and is trusted by some of the UK’s best known companies to provide pension solutions.

Completion of the transaction is subject to regulatory approvals.

Addy Loudiadis, Chief Executive Officer of Rothesay Life, said: “I am delighted that GIC and MassMutual will be substantially increasing their investment in Rothesay. This is a strong expression of confidence in the company and provides the business with exceptional long-term support from two of the world’s leading institutional investors. Rothesay will continue to differentiate itself by providing a full range of solutions on a large scale, as well as by taking full advantage of strategic prospects with a value and risk-driven approach to underwriting.

She continued “I am very grateful to Blackstone for their invaluable partnership over the last seven years which has been instrumental in helping us develop and grow the business into a market leader.

Qasim Abbas, Senior Managing Director at Blackstone, said: “The transformational growth of the business since our initial investment [in 2013] has been outstanding. Rothesay is now recognised as a market leader in de-risking solutions having executed over £16bn of new business in 2019, the largest ever total for a UK bulk annuity insurer, as well as the successful expansion into attractive new asset classes. MassMutual and GIC are the natural long-term holders for Rothesay and we wish both the company and the shareholders continued success going forward.”

Yong Cheen Choo, Chief Investment Officer of Private Equity, GIC, said: “We have been shareholders in Rothesay since 2013 and are pleased to have helped the company grow into the market leader it is today. We have confidence in Rothesay’s long-term prospects given its highly capable management team and strong risk management practices. We look forward to working closely with MassMutual to add value to Rothesay, as the company continues to strengthen its leading position in pension de-risking solutions.”

Tim Corbett, MassMutual Chief Investment Officer said: “We are pleased to build on the strong, long-term relationship we have established with Rothesay Life, which has experienced tremendous growth, has a proven business model and strategy and is well-positioned in the market. We are looking forward to this next chapter of our partnership.”