Transfer of Life Insurance Business from Investec Employee Benefits to Liberty Life

Liberty Life is pleased to announce that the High Court has unconditionally approved the transfer of certain life insurance business from Investec Employee Benefits (IEB) to Liberty Life, in terms of the Long-Term Insurance Act.

The transfer includes all policies held by group retirement funds that have been administered by Liberty Life since October 2003.

As a result, these policies will become Liberty Life policies from 1 January 2007, and Liberty Life will be responsible for all decisions relating to their management and administration. 

Accordingly, Liberty Life has decided to transfer the management of the assets underlying these policies from Investec Asset Management to Stanlib Asset Management. This transfer will happen during the first quarter of 2007.

Liberty Life Group Executive Ian Maron said "The transfer of these policies to Liberty  should provide policyholders with greater flexibility and improved returns. Since IEB was closed to new business, it required greater liquidity and therefore needed to follow a more conservative investment approach than Liberty does. Over time, more conservative investments will tend to deliver lower investment returns for policyholders.

"In addition, the transfer removes any confusion policyholders may have felt over whether they should be dealing with us, the fund administrator, or IEB.

"The transfer of some R4.4bn of assets to Stanlib will also deliver financial benefit to shareholders.