Goldman Sachs to sell stake in pension insurer

Goldman Sach is to sell a majority stake in pension insurer Rothesay Life in the next year.

Rothesay Life mitigates the financial and longevity risk of UK organisations’ defined benefit (DB) pension schemes.

It was established by the investment banking and securities firm in 2007.

A spokesperson from Goldman Sachs said: “The firm is likely to sell a majority stake in Rothesay Life during the next twelve months.”

In the meantime, Rothesay Life will continue to quote prices for pension risk transfer.

Lynda Whitney, partner at Aon Hewitt, added: “We believe that this should not have an adverse effect on risk settlement pricing. 

“Particularly in Rothesay’s area of the risk settlement market, the price of longevity is primarily driven by the reinsurers and not the primary insurers. However, we do believe it would be healthy for the market if Rothesay Life remains a major player, and trust [it] will not be distracted by debates about [its] ownership.

“There is still a competitive risk settlement market and with over £6 billion placed in the year to date, 2013 could still be a strong opportunity for pension schemes to remove longevity risk.”