FLEXIBLE
ANNUITIES

Giving you the flexibility you need

THIS PAGE IS FOR FINANCIAL ADVISERS ONLY

Following STM Group Plc’s acquisition of London & Colonial Holdings Limited in 2016, the Gibraltar based life assurance provider London & Colonial Assurance PCC Plc (LCA) introduced two investment linked annuity products, the Flexible Pension Annuity (FPA) and the Flexible Life Annuity (FLA) for the UK tax resident market.

LCA's Flexible Annuities
LCA’s flexible annuities could be the right choice for your clients if:

• They are UK residents looking for tax efficient, regular (i.e. monthly, quarterly, half-yearly or yearly) income payments for life;

• They have a fund in excess of £100,000;

• They would like to be able to vary the level of income they receive depending upon their circumstances;

• They wish to retain control of their fund so that upon death, the remaining value of the annuity fund can be used to provide benefits for dependants and other beneficiaries.

Currently, LCA market two flexible annuities for UK tax residents, the Flexible Life Annuity and the Flexible Pension Annuity.

FPA

FLEXIBLE PENSION ANNUITY

The London & Colonial Flexible Pension Annuity (FPA) is a lifetime annuity purchased by the policyholder using their pension assets.

The FPA allows full flexibility, providing the policyholder with the option to elect how much income to take each year in line with the lifetime annuity rules.

The FPA offers a great deal of investment flexibility, and an in-specie transfer of existing pension scheme assets is allowed.

FLA

FLEXIBLE life ANNUITY

The London & Colonial Flexible Life Annuity (FLA) is a purchased life annuity.

During the lifetime of the FLA, the policyholder can elect to change the amount of the annuity payments (either increase or decrease).

The FLA can invest in a wide range of permitted investments, so investment advice should be sought by a qualified investment advisor.

“We believe the FPA and FLA provide a flexible annuity solution in a market where differentiation is difficult to find. We are confident these flexible annuities will provide a welcome solution for advisers and their clients from a company that has been at the forefront of innovation in the UK annuity market.”

- Peter Gatenby,
Managing Director STM Life Assurance PCC Plc and London & Colonial Assurance PCC Plc

PREFERENCE SHARE

LCA is organised as a Protected Cell Company (PCC). Each LCA annuity is linked to a cell and the assets backing the annuity are owned by the cell and hence completely ring-fenced from all other policyholders’ and shareholders’ assets. Each unique cell of the company can have at least one preference share issued to that cell. LCA’s policyholders are able to purchase a preference share in the cell containing their policy at policy commencement.

The preference share gives the holder of the share at the time of policyholder’s death access to the assets being held in the cell. The preference share enables the funds from the cell to pass to the beneficiaries. Whoever holds the preference share on death has the right to the residual value. If the holder of the preference share at the time of his/her death is the policyholder then the assets in the cell will fall into the estate.

FIND OUT MORE ABOUT OUR PROTECTED CELL COMPANY STRUCTURE

HOW TO CONTACT US

Get in touch with our Business Development Team to find out more: 

Key literature

FLEXIBLE PENSION ANNUITY (FPA)
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FLEXIBLE LIFE ANNUITY (FLA)
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London & Colonial Assurance PCC Plc at a glance

London & Colonial Assurance PCC Plc (‘LCA’) is a Gibraltar based life insurance company with a long history in the UK annuity market, having transacted annuity business since its incorporation in 2001. The business was primarily established to provide an alternative to conventional annuities for high-net-worth individuals wishing to use their pension funds to purchase an annuity that provides greater flexibility for income and investment choice.

OVER

918

*

ANNUITANTS

IN EXCESS OF

£208m

*

Assets Under Administration

*LCA (As of 30 June 2023)