Slaughter and May is advising Legal & General on the sale of its Mature Savings business to the ReAssure division of Swiss Re for £650 million. The Mature Savings business, which is largely closed to new business, has around 1 million customers who hold traditional insurance based pensions, savings and investment products. The business includes both unit linked business and Legal & General’s with-profits fund. It generated £105 million of operating profit in 2016 and had assets of £30 billion at 30 June 2017.
Swiss Re will assume the economic benefit and burden of the business from 1 January 2018 via a reinsurance arrangement. It is expected that the formal transfer of the business, which will be carried out by way of a Part VII scheme under the Financial Services and Markets Act 2000, will be completed in mid-2019.
Slaughter and May worked closely with a large team from the in-house legal function at Legal & General led by Geoffrey Timms, Claire Singleton and Rosie Sears.