Transfer of some of Canada Life’s UK life, pensions and protection policies to Scottish Friendly

What is happening?

In June 2018, we entered into an agreement to transfer a block of Canada Life’s UK life, pensions and protection policies to Scottish Friendly. Subject to a review by an Independent Expert, consultation with our regulators and the approval from the High Court, in accordance with the terms of the Scheme, these policies will be transferred to Scottish Friendly on 1 November 2019. This legal process to transfer insurance business from one insurance company to another is known as a Part VII transfer.

Information on the proposed transfer

An Independent Expert, Mr Simon Grout, a partner at Oliver Wyman, a global management consulting firm, was appointed and approved by the Prudential Regulation Authority (PRA) to report on the terms of the transfer and the likely effects on all policyholders, including whether they are being treated fairly. The Independent Expert provides his conclusions in the Independent Expert’s Report which will be considered by the High Court prior to sanctioning the transfer.

The Independent Expert has currently prepared two documents:

  • The Full report has details of the effects of the transfer on transferring Canada Life policyholders, non-transferring Canada Life policyholders and Scottish Friendly policyholders and how each conclusion has been reached.
  • The Summary of the report provides an overview of the transfer and sets out the Independent Expert’s conclusions on the effect of the transfer on policyholders. It's been created to give policyholders a good understanding of the terms of the Scheme and the consequences for their policies.

You can find the Independent Expert’s full report and summary of the report in the ‘Important Documents’ section below. The Independent Expert will publish a supplemental report before the final court hearing (Sanctions Hearing), which is expected to take place on 22 October 2019.

The Chief Actuary and the With-Profits Actuary of Canada Life have also prepared reports on the effect of the transfer and their reports are included in the ‘Important Documents’ section below.

Further supplementary reports from the Actuaries will be made available prior to the Sanctions Hearing. These documents will outline any changes since the first reports outlined above.

The Scheme Document is the legal document that sets out the terms of the transfer in the UK. You can find a copy of the Full Scheme and a Summary of the Scheme in the ‘Important Documents’ section below.

You can find out more information on the Scottish Friendly website: www.scottishfriendly.co.uk/canada-life.

Jersey and Guernsey policyholders

The transferring business includes a small number of policies which comprise business carried on in or from within Jersey or Guernsey, or which are held by people resident in Jersey or Guernsey. The transfer of these policies is subject to the approval of separate schemes by the Royal Courts in Jersey and Guernsey, which will be on substantially the same terms as the UK transfer. We refer to these as the "overseas schemes".

You can find further details about the overseas schemes in Appendix 3 to the Customer Guide. The court hearings to consider the overseas schemes are expected to take place as follows:

  • Jersey scheme: 28 October 2019 at 10 am at the Royal Court of Jersey, Royal Court Building, Royal Square, St Helier, Jersey JE1 1JG
  • Guernsey scheme: 25 October 2019 at 9.30 am at the Royal Court of Guernsey, The Royal Court House, St Peter Port, Guernsey, GY1 2NZ

If approved, the overseas schemes are expected to be implemented at the same time as the UK transfer, on 1 November 2019.

You can find the drafts of the legal documents setting out the terms of the overseas schemes below:

Jersey Scheme Document

Guernsey Scheme Document

Contact Us

If you have any questions, you can contact us:

  • By phone: 0345 3000227 (or from overseas +44 [0] 345 3000227)
  • By email: customer.enquiries@canadalife.co.uk
  • By letter:
    • Canada Life Limited
      Canada Life Place
      Potters Bar
      Hertfordshire
      EN6 5BA

Canada Life Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

Canada Life International Limited and CLI Institutional Limited are Isle of Man registered companies authorised and regulated by the Isle of Man Financial Services Authority.

Canada Life International Assurance (Ireland) DAC is authorised and regulated by the Central Bank of Ireland.

Stonehaven UK Limited and MGM Advantage Life Limited, trading as Canada Life, are subsidiaries of The Canada Life Group (U.K.) Limited. Stonehaven UK Ltd is authorised and regulated by the Financial Conduct Authority. MGM Advantage Life Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority.