Cardiff-based savings bank Hodge has sold its subsidiary Hodge Life Assurance (HLA) to Reinsurance Group of America (RGA).
RGA will acquire 100% of the share capital in the life arm, according to the agreement.
The financial terms of the deal were not disclosed, and the transaction is subject to regulatory approval.
As a result of the acquisition, HLA will withdraw all of its products from the market, meaning that it will also stop selling annuities and equity release mortgages.
The market withdrawal will be effective from 19 February 2021 at 5pm (GMT).
Hodge Bank said it will give time for existing quotes and application “to proceed through to completion”, however.
Existing customers should not see any changes as they will be able to retain the same terms and conditions of their products under RGA, and payments will continue under the current arrangements.
Exit
David Landen, Hodge Group chief executive, 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. 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 at HLA, 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 HLA’s policyholders.”
