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GIC & MassMutual buy out Blackstone’s stake in Rothesay Life

30th September 2020 - Author: Matt Sheehan

Global investment firm GIC and mutual life insurer Massachusetts Mutual Life Insurance Company (MassMutual) have agreed to acquire a 36% shareholding in Rothesay Life from investor Blackstone in a deal valued at £5.75 billion.

Under the terms of the transaction, GIC and MassMutual will each become equal 49% shareholders.

Blackstone, GIC and MassMutual have all been shareholders in Rothesay Life since 2013.

Since their initial investment, Rothesay Life has grown its assets under management from £7.5 billion to £56 billion, and the group now secures the pensions of over 800,000 people.

“I am delighted that GIC and MassMutual will be substantially increasing their investment in Rothesay,” said Addy Loudiadis, Chief Executive Officer of Rothesay Life.

“This is a strong expression of confidence in the company and provides the business with exceptional long-term support from two of the world’s leading institutional investors. 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.”

Loudiadis continued “I am very grateful to Blackstone for their invaluable partnership over the last seven years which has been instrumental in helping us develop and grow the business into a market leader.”

Qasim Abbas, Senior Managing Director at Blackstone, also commented: “The transformational growth of the business since our initial investment (in 2013) has been outstanding.”

“Rothesay is now recognised as a market leader in de-risking solutions having executed over £16bn of new business in 2019, the largest ever total for a UK bulk annuity insurer, as well as the successful expansion into attractive new asset classes,” Abbas went on.

“MassMutual and GIC are the natural long-term holders for Rothesay and we wish both the company and the shareholders continued success going forward.”

Yong Cheen Choo, Chief Investment Officer of Private Equity, GIC, further stated: “We have been shareholders in Rothesay since 2013 and are pleased to have helped the company grow into the market leader it is today.”

“We have confidence in Rothesay’s long-term prospects given its highly capable management team and strong risk management practices. We look forward to working closely with MassMutual to add value to Rothesay, as the company continues to strengthen its leading position in pension de-risking solutions.”

And finally, Tim Corbett, MassMutual Chief Investment Officer, added: “We are pleased to build on the strong, long-term relationship we have established with Rothesay Life, which has experienced tremendous growth, has a proven business model and strategy and is well-positioned in the market. We are looking forward to this next chapter of our partnership.”

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