Rothesay Life Plc acquired Portfolio of Lifetime Mortgages from Just Group plc (LSE:JUST) for approximately £330 million on August 16, 2021. The consideration of £334 million and is being satisfied in a mix of cash and gilts. The proceeds received from this first transaction will subsequently be invested in a mixture of other fixed interest assets to back the insurance liabilities of the Just Group. The transaction will result in an IFRS net of tax loss of £76 million which includes the insurance liabilities impact due to the lower investment yield on the replacement bonds. This forms part of the total eexpected £125 million IFRS loss for the sale of the portfolio of lifetime mortgages announced in the interim results. The gross IFRS value of the assets that have been sold is £254 million. The sale of this portfolio of lifetime mortgages, including the remaining tranche, is eexpected to result in an improvement in the Group's Solvency II capital coverage ratio by up to 1 percentage point. Alex Child-Villiers and William Barker from Temple Bar Advisory served as a legal advisor for Rothesay Life and Just Group.

Rothesay Life Plc completed the acquisition of Portfolio of Lifetime Mortgages from Just Group plc (LSE:JUST) on August 16, 2021. As of February 22, 2022, Just has completed the sale of a portfolio of LTM to Rothesay, with a current outstanding loan balance of £537 million and an IFRS value as at 31 December 2021 of £772 million. The LTM assets being sold form part of the investments used to back the insurance liabilities of the Group. The consideration is £687 million, payable in cash. The proceeds received will be reinvested in a mixture of other fixed interest assets to back the insurance liabilities of the Group. The sale will result in an IFRS net of tax loss of £35 million which includes the impact on the insurance liabilities resulting from the expected new asset mix. This is the third sale by the Group of an LTM portfolio over the last fifteen months and further reduces Just's exposure to UK residential property risk. This completes the Group's programme of LTM portfolio sales. The Group will announce results for the year ending 31 December 2021 on 10 March 2022 and will update the market on its Solvency II position and reduced sensitivity to moves in the UK property market at that time. The impact of the sale on the Group's Solvency II capital ratio will be broadly neutral.