LONDON – British life insurer Just Group has sold a portfolio of lifetime mortgages to fellow British insurer Rothesay Life for 687 million pounds ($932.88 million), Just Group said on Tuesday.
The portfolio has an accounting value of 772 million pounds and outstanding loan balance of 537 million pounds at Dec 31 2021.
Just Group, which has been bolstering its capital position, said this was its third sale of lifetime mortgage portfolios in the past 15 months and completed its programme of such sales. The sales have cut its exposure to British residential property risk.
Lifetime, or equity release mortgages enable home-owners to borrow against the value of their property, a loan which is paid back when they die.
($1 = 0.7364 pounds)
(Reporting by Carolyn Cohn, Editing by Louise Heavens)