Transfer of National Provident Life Limited Self Employed Retirement Plans (SERPs) to Pearl Assurance Limited

On 5 February 2010, the High Court approved some changes to our business (referred to as 'the Scheme') which involves transferring National Provident Life Limited (NPLL) With-Profits Self Employed Retirement Plans (SERPs) to Pearl Assurance Limited (Pearl). Pearl and NPLL are members of the Phoenix group of companies. In connection with the Scheme, the High Court also approved some changes to the NPLL Demutualisation Scheme.

The Scheme will enhance security for NPLL policyholders and, combined with the changes to the NPLL Demutualisation Scheme, allow us to improve the flexibility we have in managing our investments, while ensuring all policyholder guarantees remain secure. It will also ensure we can continue to treat all our customers fairly, with full regard to current market conditions.

There will be no impact on existing Pearl policyholders as a result of the Scheme or the proposed changes to the Demutualisation Scheme, and NPLL policyholders transferring to Pearl will not be entitled to a share of the Pearl Estate.

The Scheme and the changes to the Demutualisation Scheme will take effect on 15 February 2010.

As we have now received approval from the High Court we have closed our Scheme Helpline. If you would like any more information about the Scheme, please refer to our news article dated 30 January 2010 .

For Jersey and Guernsey policyholders:

On 11 February 2010, the Royal Courts of Jersey and Guernsey approved schemes to transfer NPLL With-Profits Self Employed Retirement Plans to Pearl and make changes to the NPLL Demutualisation Scheme. Those schemes will also become effective on 15 February 2010, and Pearl will become the provider of the policies transferred under those schemes from that date.