Prudential And Rothesay Life Successful In Appeal

• Published date: 11 December 2020
• Subject Matter: Litigation, Mediation & Arbitration, Trials & Appeals & Compensation
• Law Firm: William Fry
• Author: Mr John Larkin, Eoin Caulfield and Ian Murray

Prudential Assurance Company Ltd (Prudential) and Rothesay Life plc (Rothesay) successfully overturned the English High Court's refusal to sanction the proposed transfer of a portfolio of annuities from Prudential to Rothesay. The Prudential/Rothesay case had already been distinguished by another English High Court judge in Re Legal and General Assurance Society Ltd and another [2020] EWHC 2299 (Ch). We explained the reasoning behind this in our article on the case, see here.

On 2 December 2020, the Court of Appeal in England overturned the High Court judgment of Snowden J in the Prudential/Rothesay case. The Court of Appeal noted that there was a failure by the English High Court to give adequate weight to:

• the opinion of the independent expert with regards to the risk of Prudential or Rothesay needing future external support;
• the absence of objections from the regulator to the scheme and
• the continuing future regulation of Rothesay.

The Court of Appeal also set out guidance on the approach a court should adopt when considering a Part VII application. It noted, inter alia, that it was necessary to identify the nature of the business being transferred and the underlying circumstances...