Rothesay Life PLC will raise at least £500 million in new equity capital from its backers as it looks to make headway in the bulk annuities market.
In a trading update, the company said its shareholders agreed to put in more funding to take advantage of "unprecedented opportunity" in the defined benefit buy-in and buy-out market. Rothesay Life has written £3.7 billion of new pension bulk annuity business so far in the second half. Year-to-date total new business volume is £4.4 billion.
The company disclosed that it is working on "several significant bulk annuity transactions" that could lead to it writing more than £10 billion of business for the year and boosting AUM to more than £50 billion.
CEO Addy Loudiadis expects a record year for new business for the company, which she anticipates will finish the year as the third-largest annuity provider in the U.K.
Rothesay Life's backers include Blackstone Group Inc., Massachusetts Mutual Life Insurance Co. and Singaporean sovereign wealth fund GIC Pte. Ltd.
