Paternoster Acquisition Questions & Answers

What changed?

On 11 January 2011, Goldman Sachs acquired Paternoster which, like Rothesay Life, is now a fully owned subsidiary of Goldman Sachs. Paternoster operates as a sister company of Rothesay Life, within the Rothesay Life group.

Who is Goldman Sachs?

The Goldman Sachs Group, Inc. is a leading investment banking, securities and investment management firm providing services worldwide, for example for corporations, financial institutions, pension schemes and governments.

Goldman Sachs’ acquisition of Paternoster demonstrates the group’s continuing commitment to the pension risk transfer market.

Goldman Sachs’ main UK operating entity, Goldman Sachs International is also authorised and regulated by the UK Financial Services Authority.

Has the UK Financial Services Authority (FSA) approved the change?

Yes, it approved the transfer of ownership and control of Paternoster UK Ltd and Paternoster Services Ltd to The Goldman Sachs Group, Inc. Both Paternoster UK Ltd and Paternoster Services Ltd (which we refer to jointly as ‘Paternoster’) are authorised and regulated by the FSA. Their company registration numbers are 448609 and 517605. As part of its strategic investment, Goldman Sachs made additional capital injections into Paternoster UK Ltd.

Will Paternoster and Rothesay Life remain separate insurance companies?

Yes, in the short term the UK Financial Services Authority (FSA) will authorise and regulate them as separate companies.

There is a proposal to transfer the long-term insurance business of Paternoster to Rothesay Life and the transfer will be achieved through a Scheme of Transfer under Part VII of the Financial Services and Markets Act 2000 which will be submitted to the High Court for its approval on 8 December 2011. Subject to approval being obtained, the actual transfer is expected to become effective on 14 December 2011.

What will happen to my policy with Paternoster or Rothesay Life?

Benefits will not change as a result of the transfer. If you are an individual policyholder and you are already in receipt of a pension, you will continue to receive your payments exactly as before. If you are an individual policyholder and you have not yet retired, your prospective benefits will, similarly, be unaltered. Your policy will continue to be serviced in the same way as now.

Will the customer service I receive change?

Goldman Sachs is committed to maintaining or improving the service standards provided to Paternoster's and Rothesay Life's policyholders. Please continue using your same contacts as before.