GIC, MassMutual to buy Blackstone’s 36% stake in UK insurer Rothesay Life for $7.4b

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Singapore investment firm GIC and the US-based Massachusetts Mutual Life Insurance Company (MassMutual) have agreed to acquire Blackstone’s 36 per cent stake in the UK-based annuity provider Rothesay Life, according to a press statement.

The deal value is reported at 5.75 billion pounds ($7.4 billion).

Following the completion of the transaction, GIC and MassMutual will increase their shareholding to 49 per cent each in Rothesay Life. However, the completion of the transaction is subject to regulatory approvals.

“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,” said CEO Addy Loudiadis.

GIC, MassMutual, and Blackstone have been shareholders in Rothesay Life since December 2013. At the time, the three parties acquired a 64 per cent stake from Goldman Sachs, in a deal that was rumoured to be worth 900 million pounds, according to an ai-CIO report.

The transaction in 2013 was prompted by new capital requirements under the Basel III regulation, which encouraged Goldman Sachs to explore different options with Rothesay Life. However, Goldman kept a 36 per cent stake in the insurer at that time.

Goldman Sachs then sold a 33 per cent stake in August 2017 to GIC, MassMutual and Blackstone. Rothesay Life’s management held the remaining stake, as reported by PI Online.

Since Blackstone’s initial investment in 2013, Rothesay Life has executed over 16 billion pounds worth of new business until 2019, as well as successfully expanded into attractive new asset classes. “Rothesay is now recognised as a market leader in de-risking solutions,” said Qasim Abbas, senior managing director at Blackstone.

Established in 2007, Rothesay Life has assets under management of 56 billion pounds and insures the pensions of over 800,000 individuals. The company’s strong growth has been achieved through the accumulation of pension scheme clients, significant strategic acquisitions, and the reinsurance of annuity portfolios.

Existing Rothesay Life clients include pension schemes and customers associated with names such as Asda, National Grid, Allied Domecq, Cadbury’s, telent, Prudential, British Airways, Lehman Brothers, and Aegon.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.