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Lloyds Bulk Annuity Sale: Too Small To Impact Spreads

FINANCIALS

Lloyds Banking selling GBP6bn bulk annuity portfolio to Rothesay Life (LLOY LN). Positive simplification deal but too small to impact spreads, we feel.


  • Lloyds’ Scottish Widows business is selling the portfolio to specialist closed-life operator, Rothesay to drive capital efficiency and continue to simplify the business. Lloyds is aiming to be a capital-light, digital-led life and wealth business.
  • There are no figures given for the capital release (or price paid) in this deal but (at Dec-23) Lloyds had around GBP49bn of closed business within the insurance division, out of a total of GBP213bn. So this deal is both small and the insurance business is already a relatively small consumer of capital within Lloyds overall.

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