Transfer

Proposed transfer of business to Royal London DAC, a subsidiary of Royal London

Update 7 February 2019 – The transfer has been approved and takes effect on 7 February 2019. See Key updates section for full details.

View key updates

This webpage tells you about the proposed transfer of Royal London’s Irish and German business to a new subsidiary of The Royal London Mutual Insurance Society Limited (Royal London) registered in Ireland. The new subsidiary is called Royal London Insurance DAC, formerly known as Royal London Financial Services DAC (Royal London DAC). Royal London DAC is authorised by the Central Bank of Ireland to undertake life insurance business. It is now selling new protection business in Ireland.

After the UK leaves the European Union, it may not be possible for Royal London to administer policies which were originally sold outside the UK. So that Royal London can continue to administer policies which were originally sold in Ireland or Germany after the UK leaves the European Union, we are proposing to transfer approximately 460,000 policies to Royal London DAC.

The proposed transfer needs to be approved by the UK High Court. We expect the High Court hearing to take place on 31 January 2019. If the proposed transfer is approved, the transfer is expected to take place on 7 February 2019. If there are any changes to these dates, we will update you using this website. Please note that the ‘Key updates’ section below was updated on 7 February 2019.

On this webpage you will find:

  • Copies of the letters and booklets that we have mailed to customers affected by the proposed transfer
  • A booklet containing information for customers whose policies will not be affected by the proposed transfer
  • More detailed information including copies of the legal documentation and copies of certain reports about the transfer
  • Any updates and notifications about the proposed transfer including the outcome of the High Court hearing.

If you would like a copy of any of the documents provided on this website please contact us on the telephone number below.

If you have any concerns about the transfer and how it could affect you, page 3 of the policyholder booklet explains how you can raise them. Alternatively, if you have any questions you can contact us by:

Telephone lo-call:

  • 1850 453 551

We have 2 other websites:

  • royallondon.com - this provides the relevant phone number for policyholders who have a policy that was:
    - sold in Ireland but is administered from the UK and held in Royal London’s Royal Liver Sub Fund; 
    - sold in the UK and held in the Royal London Main Fund, Royal Liver Sub-Fund or Royal London Other Closed Funds
  • royallondongroup.de – this provides the relevant phone number for policyholders who have a policy sold in Germany by Royal London under the ‘Scottish Life International’ brand.

By writing to:

Royal London
47-49 St Stephen’s Green
Dublin 2

Information

Here you can find copies of the letters and booklets we are sending to policyholders who will be affected by the transfer. There are several tailored versions of the documents so that different groups of policyholders can see how they are likely to be affected by the proposed transfer. If you are affected by the transfer you will only be sent the letter(s) and booklet(s) that are relevant to the policies you hold.

Your policy may have originally been sold by:

  • Royal London including those sold by Royal London under the ‘Caledonian Life’ brand
  • Royal Liver including those sold under the ‘Caledonian Life’ and ‘Progress’ brands, Irish Life, Caledonian Insurance Company, Friends Provident, London & Manchester or the Civil Servants Annuities Assurance Society before it was transferred to Royal London on 1 July 2011
  • GRE Life Ireland before it was transferred to Royal London on 1 July 2012, and since then has been held in Royal London’s Royal Liver Sub-Fund
  • Royal London under the ‘Scottish Life International’ brand in Germany.

Separate booklets and letters have been produced for:

Policyholders who have a protection policy sold in Ireland since 1 July 2011 through Royal London’s Irish branch, held in the Royal London Main Fund which is  proposed to transfer to Royal London DAC

Policyholders who have a policy originally sold in Ireland, held in Royal London’s Royal Liver Sub-Fund which is proposed to transfer to Royal London DAC

Policyholders who have a policy originally sold in the UK, held in Royal London’s Royal Liver Sub-Fund which is not proposed to transfer to Royal London DAC

Policyholders who have a Royal London Main Fund Non-Transferring or Other Closed Funds policy which is not proposed to transfer to Royal London DAC. This booklet is only available on the website, or by calling 0345 850 1004 to request a copy

Policyholders who have a bond sold by Royal London under the ‘Scottish Life International’ brand in Germany, held in the Royal London Main Fund which is proposed to transfer to Royal London DAC

Below you will find the full versions of the reports by the Chief Actuary of Royal London, the With-Profits Actuary of Royal London and the Independent Expert (a summary of the Independent Expert’s report can be found in the policyholder booklet).

You can find definitions for each of the roles listed in italics above in the policyholder booklets.

The following people will write supplementary reports shortly before the High Court hearing:

  • The Independent Expert
  • The Chief Actuary of Royal London
  • The With-Profits Actuary of Royal London

A report by The Head of Actuarial Function for Royal London DAC is expected to be made available.

07 February 2019 - Transfer of business

The transfer of Royal London’s Irish and German business to Royal London Insurance DAC, which was approved by the High Court on 5 February 2019, took effect on 7 February 2019.

You can find copies of the Independent Expert’s initial report in the ‘reports’ section above.

Supplementary reports and the updated scheme document can be found in this section below.

If you have any questions, please contact 1850 453 551.

5 February 2019 - Transfer approved

The transfer of Royal London’s Irish and German business to Royal London Insurance DAC (Royal London DAC), a new subsidiary of The Royal London Mutual Insurance Society Limited (Royal London) registered in Ireland, was approved by the High Court on 5 February 2019.

We expect the transfer to take effect on 7 February 2019.

You can find copies of the Independent Expert’s initial report in the ‘Reports’ section below. Supplementary reports and the updated scheme document can be found in the Key Updates section below.

If you have any questions, please contact 1850 453 551.

30 January 2019 - Court Hearing date, time & room confirmation

The application made to the High Court regarding the transfer of certain long-term insurance business of The Royal London Mutual Insurance Society Limited (Royal London) to Royal London Insurance DAC (Royal London DAC) is due to be heard before a Judge of the Chancery Division of the High Court at 7 Rolls Buildings, Fetter Lane, London EC4A 1NL on 31 January 2019 at 11:30am. The hearing will take place in court room 5.

If you intend to attend the hearing, it would be helpful if you could inform us and provide us with information about any concerns that you have in advance. You can contact us by calling 1800 307 020.

29 January 2019 – A statement from the Chief Actuary and the With-Profits Actuary of The Royal London Mutual Insurance Society

It has been brought to our attention that there is a potential inconsistency between the description of the circumstances in which the cover available under the FSCS for certain of the transferring policyholders is lost between our reports (Main and Supplementary) as Chief Actuary and With-Profits Actuary respectively of RLMIS and the Independent Expert’s Supplementary Report.

The Chief Actuary and With-Profits Actuary’s Reports refer to such cover being lost “following the Transfer” for policies which were covered whilst held by RLMIS, i.e. the loss occurs after the Effective Date. The Independent Expert’s Supplementary Report clarifies that cover is lost in respect of any acts or omissions arising after the Effective Date. Acts and omissions which occur before the Effective Date would continue to be covered by the FSCS.

Examples of such acts and omissions are:

  • mis-selling occurring prior to the Effective Date;
  • errors in administration occurring prior to the Effective Date; and
  • valid claims under the insurance policy where the insured event occurs prior to the Effective Date.

We can confirm that we are in agreement with the Independent Expert’s clarification and note that he continues to conclude that the likelihood of default or insolvency of Royal London DAC is remote which is also consistent with our views.

Shaun Cooper, Chief Actuary - The Royal London Mutual Insurance Society Limited
Brian Murray, With-Profits Actuary - The Royal London Mutual Insurance Society Limited

29 January 2019

Update on 24 January 2019:

Ahead of the final Court Hearing on 31st January 2019, please find linked below the following new documents:

Supplementary report form the Independent Expert
Supplementary report from the Chief Actuary of Royal London
Supplementary report from the With Profits Actuary of Royal London
Report from the Head of Actuarial Function of Royal London DAC
An updated version of the full Scheme document

If you have any questions about the above documents or would like a copy of one or more of them to be sent to you please call us on the telephone number shown above.

Please note that Royal London DAC has changed its full name from Royal London Financial Services DAC to Royal London Insurance DAC.

With effect from 1 January 2019, Royal London DAC became authorised by the Central Bank of Ireland to undertake life insurance business.

This ‘Key updates’ section will be updated with any further key developments in relation to the proposed transfer including the outcome of the final Court hearing and, if the proposed transfer is approved by the Court, with confirmation that the proposed transfer has been completed at 00.01 GMT on 7 February 2019.

Royal London maintains a Principles and Practices of Financial Management (PPFM) document for each of its funds. Policies that are categorised as ‘With Profits’ (including Liver policies classified as ‘Contingent Bonus’) are managed in accordance with the PPFM for the fund they are held in. The Royal Liver Sub-Fund PPFM and Royal London Main Fund PPFM will be updated if and when the proposed transfer happens to take account of the proposed transfer. The other funds are not impacted by the proposed transfer meaning no changes are proposed to be made to their PPFMs. More information about Royal London’s PPFMs can be found here.

The updated Royal Liver Sub-Fund PPFM and Royal London Main Fund PPFM can be found below. A summary of the relevant PPFM changes can also be found in the policyholder booklets for Royal Liver Sub-Fund transferring policyholders, Royal Liver Sub-Fund non-transferring policyholders and German Bond policyholders.

After the transfer, transferring with-profits (including Liver policies classified as ‘Contingent Bonus’) policies will be held in either the Liver Ireland Sub-Fund or the German Bond Sub-Fund. Royal London DAC will manage these funds in line with PPFM Guide documents which can be found below.

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