In the Matter of Phoenix Life Limited

Facts

Phoenix Life Ltd ("PLL") and ReAssure Life Ltd ("RLL") are large English insurers in closed-fund run off, both authorised by the Prudential Regulation Authority to carry on long term business and holding some 4 million policies between them. Part of their business had been written in five EEA states — the Republic of Ireland, Iceland, Germany, Norway and Sweden — under the passporting freedoms of service and establishment available before the UK left the European Union. Those rights having ceased, both companies were under a regulatory obligation to find an appropriate solution for the affected EEA policyholders, and in PLL's case its Irish branch, now a third country branch, could not be confident of continuing to offer the fullest range of services. They therefore promoted an insurance business transfer scheme under Part VII of the Financial Services and Markets Act 2000, transferring 19,630 PLL policies (best estimate liabilities of £638 million) and 6,756 RLL policies (£124.9 million) to Phoenix Life Assurance Europe DAC, a newly established Irish designated activity company authorised by the Central Bank of Ireland. PLL also promulgated an inter-conditional Irish scheme under section 13 of the Assurance Companies Act 1909. The transferors and transferee applied to the court for sanction; neither regulator objected, and five policyholder communications were treated as objections.