LONDON Goldman Sachs (GS.N) unit Rothesay Life has agreed a 230 million pound ($370.68 million) deal to insure a retirement fund of General Motors' (GM.N) British employees, making it the biggest player in the market for so-called bulk purchase annuities.
GM's UK retirement plan is paying Rothesay Life for a form of investment policy that will generate income to cover payments to its 11,000 members, they said on Thursday.
Rothesay, which on Wednesday unveiled a similar deal with the Merchant Navy Officers' pension fund, said the transaction took the total amount of bulk annuity business it has written to date to over 10 billion pounds, more than any other provider.
Rothesay, which launched in 2007 and acquired rival Paternoster last year, competes with the likes of Legal & General (LGEN.L), Aviva (AV.L) and Prudential (PRU.L) in the bulk annuity market.
Demand for bulk annuities has grown strongly in recent years as pension funds, hit by longer pensioner lifespans and choppy financial markets, seek to offload some of their obligations to insurers and banks, who are financially stronger and more expert in handling risk.
(Reporting by Myles Neligan; Editing by Elaine Hardcastle)