"This is a significant transaction for Hodge; allowing us to focus and grow across our specialist markets through Hodge Bank."
Hodge has sold its subsidiary Hodge Life Assurance Company HLAC) to Reinsurance Group of America.
HLAC will withdraw its products from the market as a result of this transaction and will therefore cease to sell annuities and equity release mortgages.
Hodge will continue to sell all other existing products including retirement interest-only and holiday let mortgages.
The withdrawal of new business will take effect on 19th February when Hodge will cease issuing new business quotes on its annuity and equity release products. It says an 'appropriate amount of time' will be allowed for existing quotes and applications to proceed through to completion.
There will be no change to the terms and conditions for existing equity release customers, and payments to our annuity customers will continue under existing arrangements.
David Landen, Hodge Group CEO, said: “This is a significant transaction for Hodge; allowing us to focus and grow across our specialist markets through Hodge Bank. Later life lending remains a key part of our business and we will continue to evolve and develop our product range. As a result of the sale, we are withdrawing from the equity release market. However, as the longest established equity release lender in the UK, we are looking at opportunities to re-enter this market soon, working with third party funders.”
Deian Jones, managing director of HLAC, commented: “HLAC’s growth in recent years has been limited by its small size and high capital requirements. The sale to RGA provides a strong, stable long-term home for HLAC’s policyholders.”