Aviva announces £320m bulk annuity deal with the John Laing Pension Fund
Aviva announced it has completed a £320m bulk purchase annuity transaction with the John Laing Pension Fund. John Laing is an active investor and manager of infrastructure projects, focused on major transport, social and environmental infrastructure projects and renewable energy projects, across a range of international markets including the UK.
This is the second buy-in transaction between Aviva and the John Laing Pension Fund. It follows a £211 million transaction in December 2008. Aviva will insure the defined benefit pension liabilities for 1,850 current pensioners, taking responsibility for the investment and longevity risk of these members from the Fund. Members will see no change in the amount of their benefits or the way in which they are paid as a result of the transaction.
The process to select an insurer and negotiate terms was led by Willis Towers Watson. The trustee received legal advice from Linklaters, whilst Aviva received guidance from Eversheds Sutherland.
Jamie Cole, Head of Bulk Purchase Annuity Origination at Aviva, said: “We’re delighted to have again been able to help the Trustees provide greater security for their members. Thanks to the experienced and well-prepared teams on all sides we were able to complete a smooth and efficient transaction. We continue to see strong demand from schemes, and we’re committed to helping schemes of all sizes with their de-risking plans.”
Mike Clare, Chair of Trustees for the John Laing Pension Fund, said: “The Trustees have been focused on achieving the right long-term de-risking for the Fund. The Fund has had a strong relationship with Aviva since its 2008 buy-in and now was the right time to undertake a further buy-in. The buy-in is good news for member security and is a result of positive and successful collaboration between all those involved.”
Shelly Beard, Senior Director at Willis Towers Watson, said: “We were very pleased to help the Trustees to secure their second buy-in, extending their partnership with Aviva. This was an important de-risking step for the Fund and the Trustee benefited from a highly competitive pensioner buy-in market at the current time.”
Aviva announces £900m bulk annuity deal with Kingfisher Pension Scheme
Aviva announces it has completed a £900m bulk purchase annuity transaction in July, with the Kingfisher Pension Scheme. Kingfisher plc is a British multinational retailing company headquartered in London, which manages brands including B&Q and Screwfix.
Aviva will insure the defined benefit pension liabilities for over 8000 members, taking responsibility for the investment and longevity risk of these members from the Plan. Members will see no change in the amount of their benefits or the way in which they are paid as a result of the transaction.
The process to select an insurer and negotiate terms was led by Aon. The trustee received actuarial advice from Hymans Robertson and legal advice from Eversheds Sutherland (International) LLP and Aviva was advised by DLA Piper.
Jamie Cole, Head of Bulk Purchase Annuity Origination at Aviva, said: “Kingfisher is a leading multinational retailer with a strong presence in the UK and we’re proud to have helped the Trustees of the Pension Scheme to secure benefits for their members. Throughout the process we’ve been working to an ambitious timeline and thanks to the expertise and collaboration of all parties we completed the transaction within three weeks of exclusivity.”
Clive Gilchrist of BESTrustees, Chair of Trustees the Kingfisher Pension Scheme, said: “This is great news for our members. The Trustee, with support from the Kingfisher pension executive team and our external advisers, has successfully completed a third buy-in and secured these existing pensioner members’ benefits through Aviva Life & Pensions UK limited, an insurer which has strong financial credentials and a track record of excellent customer service.”
John Baines, Head of Bulk Annuities at Aon, said: “This third, and largest, buy-in transaction in which Aon has worked with the Kingfisher Trustee really demonstrates the value of developing a clear strategy. The tried-and-tested decision-making framework allowed them to use their previous experience to once again benefit scheme members. The first half of 2021 saw a relatively modest level of activity in the bulk annuity market, which gave rise to an opportunity for the Trustee to move quickly to capture excellent market pricing.”
Simon Daniel, Partner at Eversheds Sutherland, said: “The Trustee had clear objectives for this transaction and was very well prepared. Eversheds Sutherland is delighted to have been part of the team that delivered it for the Scheme. Aviva is a new partner for the Trustee and it was great to work with its advisers to put in place contractual arrangements that meet all parties’ requirements and, most importantly, provide further benefit security for members.”
Aviva announces £26m bulk annuity deal with the ABI
Aviva announced it has completed a £26m bulk purchase annuity buy-in transaction with the Trustees of the Association of British Insurers Pension & Assurance Scheme. This is the second transaction between Aviva and the Association of British Insurers Pension & Assurance Scheme, following a £10m transaction completed in 2017.
Aviva will insure the defined benefit pensioner liabilities for 191 members, removing the investment and longevity risk of these members from the Scheme. Members will see no change in the amount of their benefits or the way in which they are paid as a result of the transaction.
The competitive tender process to select an insurer and negotiate terms was led by Mercer, with Shepherd and Wedderburn LLP providing legal advice.
Jamie Cole, Head of Bulk Purchase Annuity Origination at Aviva, said: “We are delighted to have completed a second transaction with the Association of British Insurers Pension & Assurance Scheme.
“All parties worked closely to ensure the smooth and efficient completion of this transaction which provides greater security for Scheme members and shows Aviva’s flexibility in transacting with schemes of all sizes.”
Philip Exact, Chairman of the Association of British Insurers Pension & Assurance Scheme’s Trustees, said: “We worked closely with the ABI and Mercer over the last 12 months to plan, and then take, this important step on our journey to further reduce the Scheme’s risks.
“Aviva were selected after a competitive tender process and we are very pleased to have successfully completed this transaction.”
Deborah McWhinney , Risk Transfer Principal at Mercer, said: “We are very pleased to have been able to work with the Trustees again and bring this second tranche of pensioners to the market.
“This is a further significant step for the Trustees in their de-risking journey and represents a positive outcome for the long term security of members’ benefits. Despite ongoing uncertainty, we continue to see pension schemes concentrating on de-risking activity and we are looking forward to seeing more transactions throughout the year”.