Aviva Life and Pensions UK has completed a £875m bulk annuity buy-in transaction with the Aviva staff pension scheme. This is the second deal with the scheme, having announced a £1.7bn transaction in October last year.
Aviva will insure the defined benefit pension liabilities of 2,868 members, removing the investment and longevity risk of scheme members.
Members have been told they will experience no change in the amount of benefits they receive or the way in which they are paid as a result of the deal.
The Scheme Trustee was independently advised throughout the process by Hymans Robertson and Linklaters.
Brian Bussell, chair of the trustee of the Aviva staff pension scheme, said: “The Trustee is delighted to have entered into this second buy-in with Aviva to continue to take steps to help secure the benefits due to our members.
“In addition to the existing longevity swap and buy-in, this recent buy-in helps to further reduce the amount of longevity and investment risk within the scheme.”
Jamie Cole, head of bulk purchase annuity organisation at Aviva, said: “This latest transaction with the Aviva Staff Pension Scheme further underlines our capabilities and expertise in the de-risking market.
“It has been a year of uncertainty for many, but we’ve consistently helped schemes to secure member benefits throughout and we’re pleased to now support the Aviva Staff Pension scheme with the next stage of their de-risking strategy. We remain focused on the disciplined growth of our business and this transaction builds on the record £5billion of new bulk annuity business reported in our third quarter operating update.”
Michael Abramson, partner at Hymans Robertson, said: “Hymans Robertson is pleased to have helped the Trustee take another meaningful step in its de-risking journey. In a turbulent year, this buy-in is a prime example of how pension schemes who are well prepared can move nimbly to take advantage of de-risking opportunities.”