Hodge sells its Life Assurance arm to RGA
Hodge announces that it has entered into an agreement to sell 100% of the share capital in its subsidiary Hodge Life Assurance Company Limited (HLAC) to Reinsurance Group of America, Incorporated (RGA).
The transaction is subject to regulatory approval. HLAC will withdraw its products from the market as a result of this transaction and will therefore cease to sell annuities and equity release mortgages. Hodge will continue to sell all other existing products including RIO and holiday let mortgages and remain committed to the later life and specialist lending market.
The sale of HLAC allows the Hodge group to focus on scaling its specialist lending business and continue its recent growth in these markets.
David Landen, Hodge Group CEO, said:
“This is a significant transaction for Hodge; allowing us to focus and grow across our specialist markets through Hodge Bank. Later life lending remains a key part of our business and we will continue to evolve and develop our product range. As a result of the sale, we are withdrawing from the equity release market. However, as the longest established equity release lender in the UK, we are looking at opportunities to re-enter this market soon, working with third party funders.”
Deian Jones, Managing Director of HLAC, commented:
“HLAC’s growth in recent years has been limited by its small size and high capital requirements. The sale to RGA provides a strong, stable long-term home for HLAC’s policyholders.”
The withdrawal of new business will take effect on 19th February 2021 at 5pm (GMT) when Hodge will cease issuing new business quotes on its annuity and equity release products. An appropriate amount of time will be allowed for existing quotes and applications to proceed through to completion.
The transition from HLAC to RGA is planned to be as seamless as possible from a customer point of view. There will be no change to the terms and conditions for our Equity Release customers, and payments to our annuity customers will continue under existing arrangements.
Hodge Group is being advised by Fenchurch Advisory Partners (as financial adviser) and Burges Salmon LLP (as legal adviser).
Notes to editors
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Hodge is an independently owned group of businesses based in Cardiff, offering a range of products and services through its Hodge Bank brand. Hodge Bank offers a range of personal deposit-taking services to private and commercial clients, as well as lending to commercial clients nationwide. More information can be found on the website www.hodgebank.co.uk.
The Hodge Foundation, a charity supporting the welfare, medical, academic and educational areas own 79% of Hodge.