LONDON Oct 22 Goldman Sachs has sold
most of its stake in Rothesay Life, a UK insurer founded and run
by one of its former partners, freeing up capital to meet
stricter regulatory requirements.
Singapore wealth fund GIC and private equity group
Blackstone are buying 28.5 percent each while
Massachusetts Mutual Life Insurance Company will take 7 percent,
Rothesay Life said on Tuesday.
Goldman Sachs will remain the largest shareholder with a 36
The parties did not disclose the terms of the deal, which is
subject to regulatory clearance.
Rothesay Life, which insures pension liabilities, was
established as a wholly owned subsidiary of Goldman Sachs in
2007, run by partner Addy Loudiadis who now holds the post of
"Rothesay Life's success has now brought it to a size at
which it is more capital-efficient for Goldman Sachs to share
its ownership with other investors," said Goldman Sachs Vice
Chairman Michael Sherwood.
Goldman sold 80 percent of another insurance business it
owned, reinsurer Global Atlantic Financial Group, earlier this
year because of the way new capital rules would treat its
ownership of the business.
The sale boosted Goldman's Tier 1 common capital ratio under
Basel 3 rules by half a percentage point, Chief Financial
Officer Harvey Schwartz said last month.