11 September 2009

Sovereign Reversions plc

SOVEREIGN ANNOUNCES NEW DEAL TO MANAGE EQUITY RELEASE PLANS

The board of Sovereign Reversions plc ('Sovereign' or the 'Group' SVN.L) is pleased to announce that its subsidiary, Home & Capital Trust Limited ('Home & Capital'), has today taken over operational responsibility to administer a portfolio of around 1,000 home reversion plans on behalf of a major international financial institution. A long-term contract is expected to be executed in due course.

This appointment will increase the Group's plans under management from approximately 2,000 to 3,000 and add a valuable recurring revenue stream to its equity release activities. These additional home reversion plans were originated by In Retirement Services, which is now in administration.

Sovereign captures value in equity release in four ways: by investing in home reversions, and, through Home & Capital, advising retirees on equity release, providing equity release plans and administering plans for third parties.  

Graeme Marshall, Sovereign's chief executive said: 'This is a significant step for Home & Capital's equity release business and will materially enhance its recurring revenue base, further establishing us as a leading administrator of equity release plans. It demonstrates that Home & Capital can improve its performance even in the current difficult market conditions'.

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