The group has concluded that the insurance company's growth will be significantly slower than originally anticipated
UK-based Life Trust Holdings has announced that its Irish subsidiary Life Trust Insurance will close to new business following a strategic review.
The subsidiary offered the Longevity Income Plan to consumers via selected independent financial advisers in the UK, and recently launched the Longevity Risk Manager for small- and medium-sized pension schemes, said Life Trust Holdings.
The group has concluded that with the UK now in a deep recession of unknown duration, the insurance company’s growth will be significantly slower than originally anticipated. This means that extra capital would be required by Life Trust Insurance (LTI) from late 2009. The Life Trust Holdings board has explored a range of options to secure new funding, but in the current economic climate it has not been possible to raise further capital.
According to Life Trust Holdings, its first priority is to ensure planholders are treated fairly. The LTI board has therefore taken the decision to close the company to new business and offer all planholders the return of their original investment plus an ex gratia payment. As the Longevity Risk Manager has been recently launched there are no policyholders affected.
Andy Briscoe, CEO of Life Trust Holdings, said: We are taking this action having explored every avenue available to us and we believe this is the right decision for the planholders and the most responsible course of action.