Aviva completes £53m bulk annuity deal with GM

The insurer announced its transaction with the General Motors (VACPF) Pension Fund

Aviva has announced it has completed a £53m bulk purchase annuity transaction with the General Motors (VACPF) Pension Fund.

The insurer will cover the defined benefit pension liabilities of 1,392 members at General Motors (GM), the sponsoring employer and global vehicle manufacturer, which will remove the investment and longevity risk of fund members.

However, members will not see any clear change in the amount of benefits they are paid following the transaction.

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Following the transaction, Jamie Cole, head of Bulk Purchase Annuity Origination at Aviva, said: “We’ve worked closely with the Trustees of the General Motors Pension Fund to complete this transaction. Aviva’s robust capital position and experience were important considerations for the Trustees when selecting an insurer to secure member benefits.”

Rob Assinder, chair of the Trustee of the VACPF, said: “Insuring our members’ benefits with Aviva provides them with long term security and was made possible through a collaborative period of intensive preparation led by Aon, with legal advice from CMS and Eversheds Sutherland.”

Michael Walker, principal consultant at Aon Solutions UK Limited, said: “This transaction with the VACPF was able to complete rapidly, capturing favourable pricing, due to the enhanced level of preparation completed between Aon and the in-house pensions team and by using Aon’s Pathway service which is specifically designed for schemes of this size.”

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