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Customer information
During July and August 2022, the following information was sent to customers who took their policy out in Ireland:
Letters which highlight the key points about the transfer:
A guide which includes a summary of the terms of the transfer (the Scheme) and a Summary Report from the Independent Person who was appointed to review the transfer.
A leaflet which includes more detail about the changes to with-profits policies.
A booklet which includes answers to some questions that customers may have had about the transfer.
Technical information
Here’s some additional information that you may find helpful.
A report prepared by an Independent Person, Philip Simpson, who is a Principal (a senior qualified actuary) at Milliman LLP, which details his review of the transfer and his opinion on whether any group of policyholders were materially adversely affected.
We informed the CBI of his appointment, which was approved by the PRA in consultation with the FCA.
This is a summary of the Independent Person’s report.
The supplementary report sets out the Independent Person’s consideration of the likely effect of the transfer on policyholders in light of developments since his main report, including the financial position of Phoenix and PLAE as at 30 June 2022, responses received from policyholders, other matters referred to in the main report, and his conclusion that his opinion of the impact of the Scheme on policyholders remains unchanged.
The legal document which sets out the terms of the transfer.
Document updated on 26 September 2022 to correct a spelling error , provide additional clarity and include an updated actuarial calculation.
The legal document which incorporates the Irish Scheme, setting out the terms of the transfer of Irish policies.
Document updated on 26 September 2022 to correct a spelling error , provide additional clarity and include an updated actuarial calculation.
This is a summary of the UK and Irish Schemes.
These are the legal notices which set out the details of the UK and Irish Court hearings.
Actuarial reports
The Chief Actuary is an actuary who has been appointed by an insurer to provide guidance to the Board on actuarial matters.
- The Chief Actuary of Phoenix prepared a report regarding the impact of the transfer on the policyholders of Phoenix.
- The With-Profits Actuary of Phoenix prepared a report regarding the impact of the transfer on with-profits policyholders of Phoenix.
- The Head of Actuarial Function for PLAE prepared a report regarding the impact of the transfer on all policyholders.
In their supplementary reports, the Chief Actuary of Phoenix and the Head of Actuarial Function for PLAE consider developments since their main reports, including the financial position of Phoenix and PLAE as at 30 June 2022, responses received from policyholders, other matters referred to in the main report, and the conclusion that their respective opinions on the likely effect of the transfer on policyholders remains unchanged.
The supplementary report from the Chief Actuary of Phoenix includes an appendix which provides the opinion of the With-Profits Actuary of Phoenix supporting the conclusions in respect of the with-profits policyholders of Phoenix.
Reinsurance agreements
The following reports are the reinsurance agreements that will be put in place.
Information relating to transferring with-profits policies
With-profits policies that were sold in Ireland transferred to new with-profits funds that were set up in PLAE.
To minimise the impact on customers, PLAE entered into a reinsurance arrangement with Phoenix Life Limited (Phoenix) and transferred the economic responsibility for the policies back to Phoenix. As a result of this reinsurance, the PLAE with-profits policies continue to invest in the same with-profits fund in Phoenix as they did before the transfer.
The with-profits funds in Phoenix continue to be managed in accordance with the Phoenix Principles and Practices of Financial Management (PPFM) which describes how the with-profits funds are managed. The PPFM was updated to take account of the transfer and reinsurance arrangement.
The Phoenix Board continue to be responsible for the general management of the Phoenix with-profits funds.
The Phoenix With-Profits and SPI With-Profits Fund Supervisory Committee (WPC) oversee decisions made by the Phoenix Board in relation to its management of the Phoenix with-profits funds and are also responsible for determining investment and bonus policy for the SPI With-Profits Fund. The Terms of Reference of the committee was updated to take account of the reinsured in business from PLAE.