Reliance Mutual

Business Transfers

RELIANCE MUTUAL'S RECENT ACQUISITIONS OF BUSINESS

In 2003 Reliance Mutual acquired Criterion Life Assurance Limited which transacts a wide range of life and pensions business. Part of the business of Criterion together with all the business of British Life Office Limited (which has been a subsidiary of Reliance Mutual since 1958) was tranferred into Reliance Mutual by a Scheme of Transfer in June 2004. Criterion Life Assurance Limited was sold in January 2005 with that part of its business not transferred to Reliance Mutual.

In October 2004 Reliance Mutual accepted the transfer of part of the business of Family Assurance Friendly Society. This business was largely that originally written by Time Assurance and Templeton Life Assurance Limited.

In July 2005 Reliance Mutual acquired all the business of Eurolife Assurance Company Limited.

In September 2006 Reliance Mutual acquired all the shares in SEB Trygg (UK) Life Assurance Company Ltd from its owners, a major Swedish bank. We changed the name of this company to RM Life Assurance Limited. We transferred its business into Reliance Mutual on 31st July 2007. RM Life Assurance Limited has ceased to exist.

On 1 June 2007, Reliance Mutual acquired all the shares in University Life Assurance Society, from its previous owners, Equitable Life Assurance Society. University Life had been a subsidiary of the Equitable since 1919, and concentrated on writing business for the teaching and administrative staff of universities and similar academic institution. We also transferred this business into Reliance Mutual on 31st July 2007. University Life has ceased to exist.

On 1st August 2007 Reliance Mutual acquired all the business of Hearts of Oak Friendly Society, which on 25th June 2007 became Hearts of Oak Insurance Company Limited as part of the acquistion process. Hearts of Oak was one of the larger friendly societies in the UK with £320m of assets under management. Hearts of Oak has ceased to exist.

PROPOSED TRANSFER OF BUSINESS FROM FAMILY ASSURANCE FRIENDLY SOCIETY

Reliance Mutual and Family Assurance have agreed to the transfer of a further block of business from Family Assurance to Reliance Mutual. The business involved is closely related to that transferred in 2004, mentioned in the previous section. In 2004 legislation did not permit tax-exempt friendly society business to retain its tax exemption on transfer to an insurance company. The restrictive legislation was amended in the Finance Act 2007. Reliance Mutual and Family therefore intend to complete the missing element of the originally intended transfer.
The transfer will not involve Reliance Mutual taking on any further with profits business or the creation of further sub funds. Total assets being transferred are £14.7m, and are less than 1% of Reliance Mutual's existing assets.

You can find further details of the transfer in the following document (click to open the full report):

Reliance Mutual Actuarial Report. This is the report prepared by the Actuarial Function holder and With Profits Actuary of Reliance Mutual for the directors of the Society. The report concludes as follows:

Our conclusion is that the proposed transfer scheme has no adverse effect on the benefit expectations of the Reliance Mutual with profits policyholders and no material effect on their security. We also conclude that there are no significant additional risks taken on as a result of the transaction. We believe that the transfer is in the interests of policyholders and should proceed.

If you have any questions or concerns about the transfer and its possible effect on your policies, please contact us using one of the methods in the next section below.

In addition, any interested party may make written representations to the Financial Services Authority (FSA), and/or give notice of their intent to make oral representations to the FSA with regard to the transfer. Written representations and notice of intent to make oral representations should be received by the FSA, 25 The North Colonnade, Canary Wharf, London, E14 5HS or by email to changeincontrol@fsa.gov.uk (in both cases for the attention of Richard Martin) by 23 June 2008. If notice is given of oral representations, these will be heard by FSA on 10 July 2008 at a time and place to be determined by FSA.

HOW TO OBTAIN FURTHER INFORMATION

You can contact our transfer of business enquiry team

By telephone on (01892) 773377
By fax on (01892) 773300
By email to transfer@reliancemutual.co.uk

Or you can write to us at
Reliance Mutual Insurance Society
The Great Hall
Mount Pleasant Road
Tunbridge Wells
Kent TN1 1RG