COVID-19 delays £650m Part VII transfer between L&G and ReAssure

Written by Adam Cadle

31/03/2020

The initially planned transfer of all Legal & General (L&G) mature savings policyholders to ReAssure on 6 April 2020 for £650m will no longer take place.

The former’s traditional insurance-based savings, pensions, life and with-profits policies to ReAssure was set to take place under Part VII of the Financial Services and Markets Act 2000, but has now been delayed to the rapidly changing situation with COVID-19.

In a statement on its website, ReAssure said: “ReAssure and L&G jointly approached the High Court to seek a delay to the transfer until the situation is more stable. The Judge has confirmed his agreement to this request to adjourn the Hearing and we will continue to speak with the UK, Guernsey and Jersey Courts to ensure new dates are schedules as soon as practicable.

“Although we were fully operationally ready to migrate to ReAssure’s systems, and waiting for the UK and Guernsey Courts’ decision to sanction the Scheme, given the COVID-19 circumstances we have made this difficult decision to delay. We believe this ensures we can offer the best possible service to our customers and helps protect our employees at this difficult time.”

The transfer will significantly increase the size of ReAssure from approximately 2.2 million policies and £39bn of assets under management to around 3.2 million policies and £67bn of assets under management,

Related Articles