UK - Synesis Life, the most recently launched pension annuity bulk buy-out vehicle, has said it is likely to win approval from the UK regulator.
In a statement, Synesis said it had been informed by the Financial Services Authority (FSA) that the UK regulator was “minded to provide it with the necessary authorisations” to act as a provider of wholesale solutions to the insurance and pension annuity liabilities transfer marketplace.
As a new insurer, Synesis intends to establish itself as a leading acquirer of medium to large annuity portfolios from UK insurance companies and pension funds.
It will initially target insurance annuities, having identified this segment of the market as offering the most immediate opportunities for growth.
With its investors, JP Morgan, Royal Bank of Scotland and Warburg Pincus, Synesis intends to accept between £7-10bn worth of liabilities over the medium term.
Isabel Hudson, chief executive, said formal authorisation would follow the completion of the remaining formalities, around the time of the company’s first transaction.
Synesis was launched in May, joining other new buy-out vehicles such as Mark Wood’s Paternoster, to break into a burgeoning market which until recently was dominated by Legal & General and Prudential.
The news of the impending regulatory approval follows the FSA authorisation granted to Paternoster at the end of June.
In related news, Paternoster recently appointed former Pensions Commission chairman Adair Turner as non-executive director.
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