Reversionary Interest Society

The Reversionary Interest Society was formed under a Deed of Settlement of 1823 to purchase reversionary interests in real and personal property and life policies, and life interests. The founder of the Society is generally supposed to have been George Stephen (later knighted on the accession of Queen Victoria) who was its first solicitor. The Society was the first of its kind, although private dealing in reversionary interests had long existed.

The immediate object of the Society was to raise a fund to enable it to make purchases of reversionary interests or reversions. The Society wished to purchase reversions with a view to making a profit between purchase and recovery (when the reversion had "fallen-in" and the property was "recovered"). The profit would be appropriated to the payment of dividends or to reserves.

The early success of the Society brought about the establishment of similar societies such as the Equitable Reversionary Interest Society in 1835 and the General Reversionary Society in 1836. This success, combined with a favourable financial climate, encouraged the Society to increase its powers in 1845 by an Act of Parliament (8-9 Victoria c. 146) which authorised (amongst other things) a large increase in capital. However, an economic depression set in almost immediately. The Directors also fell out with Sir George Stephen, whose connection with the Society was severed. The Society subsequently concentrated on the purchase of life policies.

In the early days, the Society had no power to lend money. However, an Act of 1857 (20-1 Victoria c.3) enabled the Society to grant loans at interest secured on reversions and life interests. This power was used sparingly at first, but a great expansion of loans business in the 1870s allowed the Society to build up a large surplus.

In 1880, the Reversionary Interest Society became a company limited by shares. The Society was acquired in 1919 by the Equitable Life Assurance Society which also purchased the Equitable Reversionary Interest Society in the following year. Thereafter the fortunes of the two reversionary interest societies were complementary. New business was brought to an end in 1977, although the Equitable Life Assurance Society continues to look after current investments.

The Society's head office was located as follows: 17 King's Arms Yard, Coleman Street (1823-97); 30 Coleman Street (1897-1924); 19 Coleman Street (1924-66); 4 Coleman Street (1966 onwards).