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Aviva completes deal with BBA

Aviva has completed a £95m bulk purchase annuity transaction with LawDeb Pension Trustees, a sole corporate trustee of the British Bankers’ Association pension scheme (BBA).

The insurance giant will insure the defined benefit pension liabilities of all 213 members, “removing the investment and longevity risk” of these members from the scheme. 

It confirmed that members will see no change in the amount of the benefits they receive, or the way in which they are paid following this latest transaction.

The process to select an insurer and negotiate terms was led by LCP on behalf of LawDeb Pension Trustees as the sole corporate trustee. It was also advised by Barnett Waddingham and Womble Bond Dickinson.

Jamie Cole, head of bulk purchase annuity origination at Aviva, said: “We’ve worked closely with LCP to deliver this transaction using their streamlined process. 

“This once again demonstrates that smaller schemes can access attractive pricing when they are well prepared and supported by an efficient process, even against the backdrop of recent market volatility.”

Henrietta Royle, CEO of the BBA, said: “The long-term security of our pension scheme is extremely important, especially during current times of uncertainty. 

“This successful transaction with Aviva provides that security and is great news for the organisation and our scheme members.”

Sean Burnard, trustee director of LawDeb Pension Trustees and sole corporate trustee of the scheme, said: “We firmly believe this full buy-in represents excellent value in context of a more secure future for BBA’s pension scheme members. 

“When you consider the challenging times we have found ourselves in, unprecedented in fact, we are very pleased to have been able to successfully transact accordingly. This is testament to extensive stakeholder management and a real lesson in positive collaboration between all the parties involved.”

Sam Jenkins, partner at LCP, added: “The British Bankers’ Association and Scheme navigated unprecedented market volatility to reach a successful transaction that provides long-term certainty for their members. 

Aviva worked closely with us and the Scheme to make the transaction a success.  LCP’s streamlined process gave BBA and the Scheme certainty on costs and timings for the full buy-in and better access to the insurance market.”

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