Rothesay records 24% increase in new business premiums

Written by Adam Cadle

27/03/2025

Rothesay has recorded a 24% increase in new business premiums during the year.

The specialist pension insurer said it generated new business premiums of £15.7bn in 2024, up from £12.7bn in 2023.

Transactions during the year included insuring £9.6bn of liabilities with NatWest Group Pension Fund, the acquisition of Scottish Widows' bulk annuity portfolio from Lloyds Banking Group and pension risk transfer (PRT) deals with four other pension schemes including a deal with the Avimo Pension Scheme and the Medical Protection Society.

Rothesay said a "buoyant but competitive" bulk annuity market driven by an ongoing desire from pension scheme trustees and corporate sponsors to transfer their risk continued to create "considerable new business opportunities".

The insurer said it had priced its largest ever number of individual PRT transactions in 2024 and expected a similar level of activity over 2025.

Assets under management increased during the year from £61bn to £70.7bn.

Rothesay recorded a solvency capital requirement coverage ratio of 261% as at 31 December 2024, down slightly from 273% at the end of 2023.

The firm said it generated adjusted operating profits of £1.8bn, up from £1.3bn in 2023 and pre-tax IFRS profits of £113m, down from £906m in 2023.

Rothesay chief executive Tom Pearce said: "Rothesay achieved another strong year of growth, delivering significant volumes of new business. This positive momentum is testament to our proven execution capabilities, substantial capital resources and the support from our two long-term shareholders.

"As we head into 2025, a busy and competitive pension risk transfer market is already generating an exciting pipeline of potential new business opportunities. We continue to innovate and invest across our business to enable us to complete the largest and most sophisticated transactions in our market while maintaining pricing discipline and our cautious approach to risk management. Rothesay is purpose-built to protect pensions and we are proud to secure the future for over one million policyholders and deliver on our commitment to provide the highest levels of customer service."

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