LCCG buys UK's Equitable Life, policyholders gain $2.4 billion
Equitable Life, established in 1762, has more than 300,000 policyholders and manages assets of 6.3 billion pounds ($8.4 billion), but it closed to new customers in 2000 after it came close to collapse.
Its policies will transfer to LCCG’s Reliance Life subsidiary, with the deal due to complete by the end of 2019, LCCG said in a statement.
The transfer to LCCG releases 1.8 billion pounds in Equitable Life capital to its insurance customers, Equitable Life Chief Executive Chris Wiscarson told Reuters.
“This is a wonderful windfall for Equitable Life policyholders,” said Danny Cox, financial planner at funds supermarket Hargreaves Lansdown.
Reliance Life specializes in life insurance businesses that are closed to new policyholders.
Specialist providers say they can run pensions and life policies at a lower cost by using economies of scale, investing more astutely and using actuarial expertise to match assets more closely to liabilities, thereby reducing risk. ■