Transferring policies to Countrywide Assured plc

What is the role of the Independent Expert?

The role of the Independent Expert is to prepare a report on the terms of the proposed transfer to assist the High Court, the regulators and other interested parties in understanding the likely effects on all impacted policyholders and whether they are being treated fairly.

Who is the Independent Expert?

The Independent Expert is Mr Loic Bellettre of Ernst & Young LLP, a global professional services firm, providing assurance, tax, consulting, and advisory services to a wide range of industries and clients. Mr Bellettre is an actuary who is independent of the companies involved in the Scheme. His appointment and the form of his report have been approved by the PRA, in consultation with the FCA.

What are the conclusions of the Independent Expert’s report?

The Independent Expert has carefully considered the impact of the Scheme on Canada Life and Countrywide Assured customers and transferring policies, and confirm that the implementation of the Scheme would not have a material adverse effect on:

• The security of the benefits of the policyholders of Canada Life and Countrywide Assured.
• The reasonable benefit expectations of the policyholders of Canada Life and Countrywide Assured.
• The levels of administration and customer service, management and governance that apply to the policyholders of Canada Life and Countrywide.

Who else has considered the terms of the transfer?

The Chief Actuaries of both Canada Life and Countrywide Assured, as well as Countrywide Assured’s With-Profits Actuary, have each considered the terms of the proposed transfer and prepared reports for the board of directors of their respective companies. Each of those actuaries has concluded that the proposed transfer will not have a material adverse effect on the security or benefit expectations of any of the two companies’ policyholders. The reports prepared by those actuaries, as well as the report from the Independent Expert, will be considered by the High Court at the court hearing.