Hodge has announced that it has sold its life assurance company to Reinsurance Group of America (RGA) for an undisclosed sum, with the withdrawal of new business taking effect on 19 February 2021.
The life assurance group 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, CEO, Hodge Group, 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.
“The transition 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 the group’s equity release customers, with the company reiterating that its payments to annuity customers “will continue” under existing arrangements.”
He added: “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 Hodge Life Assurance Company, added: “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.”
Hodge Group is being advised by Fenchurch Advisory Partners (as financial adviser) and Burges Salmon LLP (as legal adviser).