Direct Line Life Insurance Company Limited, which was renamed Protection Life Company Limited (“Protection Life”) on 22nd January 2014, was sold by Direct Line Insurance Group Plc to Chesnara plc in November 2013. On 31 December 2014, Chesnara merged the Protection Life business with the business of its existing UK life assurance company, Countrywide Assured plc, by a process known as an “Insurance Business Transfer Scheme” under Part VII of the UK Financial Services and Markets Act 2000. Chesnara believes that the Transfer will enable it to manage its UK insurance businesses more efficiently.
Separate transfer schemes were also carried out in Guernsey and Jersey on substantially the same terms as the UK Scheme. The Guernsey Scheme and the Jersey Scheme ran in parallel to the UK Scheme to give effect to the transfer of policies issued by Protection Life to residents of Guernsey and Jersey.
The High Court of Justice of England and Wales sanctioned the UK Scheme on 4 December 2014.
The Royal Court of Jersey sanctioned the Jersey Scheme on 10 December 2014.
The Royal Court of Guernsey sanctioned the Guernsey Scheme on 12 December 2014.
All of the Schemes became effective on 31 December 2014.
The Schemes were reviewed by an Independent Expert, John McKenzie (a Fellow of the Institute and Faculty of Actuaries) whose appointment was approved by the Prudential Regulation Authority (“PRA”) after consultation with the Financial Conduct Authority (“FCA”), to report to the Court and assist it in coming to its decision. The Policyholder Circular contains a summary of the Independent Expert’s report.
In addition, the documents submitted to the Court were reviewed by the PRA and the FCA, the UK regulatory authorities for insurance companies which regulate Protection Life and Countrywide Assured, as well as the Guernsey Financial Services Commission and the Jersey Financial Services Commission. If you wish to discuss the transfer please call the appropriate call centre. Please refer to our Contact Us page to find the correct number to call.
Copies of the following information can be accessed by following the links below:
- The Policyholder Circular;
- The Independent Expert’s Report;
- The Independent Expert’s Supplementary Report;
- The UK Scheme presented to the UK Court which sets out the terms of the proposed transfer (updated version with minor clarifications at 25/11/14);
- The Representation to the Royal Court of Jersey and;
- The Jersey Scheme document presented to the Royal Court of Jersey that outlines the details of the proposed transfer of the Jersey Policies;
- The Jersey Notice;
- The Application to the Royal Court of Guernsey and;
- The Guernsey Scheme document presented to the Royal Court of Guernsey that outlines the details of the proposed transfer of the Guernsey Policies;
- The Guernsey Notice;
- UK Press Notice.