Aviva today announces it has completed a £400 million bulk purchase annuity buy-in transaction with the Trustee of the Marks and Spencer Pension Scheme.
This is the second buy-in transaction between Aviva and the Marks and Spencer Pension Scheme, following a £925 million transaction announced in May 2018*, and it was completed using a pre-agreed ‘umbrella contract’ to support a quick and efficient process. It builds on the important wider existing corporate relationship that Aviva already has with Marks and Spencer, for which it provides health and general insurance.
Aviva will insure the defined benefit pension liabilities of a further 2,293 pensioner 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 process to select an insurer and negotiate terms was led by Lane Clark and Peacock (LCP).
Jamie Cole, Head of Bulk Purchase Annuity Origination at Aviva, said: "We are delighted to have completed a second transaction with the Marks and Spencer Pension Scheme, building on the great working relationship we already share. The transaction was completed using a pre-agreed ‘umbrella contract’, allowing the efficient completion of the transaction. It provides greater security for Scheme members and again demonstrates the expertise and capability of the Aviva team."
"It provides greater security for Scheme members and again demonstrates the expertise and capability of the Aviva team."
Graham Oakley, Chairman of the Marks and Spencer Pension Trust, said: "We’re pleased to announce the purchase of this additional buy-in policy, providing another important contribution to the Trustee’s ongoing objective of reducing the longevity risk in the Scheme to increase the security of all members’ pensions. Through a collaborative approach with the Company and our existing relationship with Aviva, we were able to act quickly and benefit from the market opportunities seen during 2020 to complete a further well-priced transaction."
Myles Pink, Partner at LCP, said: "The M&S Pension Scheme has been able to take a further step to remove longevity and other risks, building on the thorough preparatory work carried out for its previous buy-in transactions. The Scheme has again demonstrated how well-prepared pension schemes that are flexible in their approach and have umbrella terms in place can efficiently lock into market opportunities when they arise."
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Notes to editors:
- We are the UK's leading diversified insurer and we operate in the UK, Ireland and Canada. We also have international investments in India and China.
- We help our 19.6 million (as at 31 August 2024) customers make the most out of life, plan for the future, and have the confidence that if things go wrong we’ll be there to put it right.
- We have been taking care of people for more than 325 years, in line with our purpose of being ‘with you today, for a better tomorrow’. In 2023, we paid £25.6 billion in claims and benefits to our customers.
- In 2021, we announced our ambition to become Net Zero by 2040, the first major insurance company in the world to do so. We are aiming to have Net Zero carbon emissions from Aviva’s operations and supply chain by 2030. While we are working towards our sustainability ambitions, we recognise that while we have control over Aviva’s operations and influence on our supply chain, when it comes to decarbonising the economy in which we operate and invest, Aviva is one part of a far larger global ecosystem. There are also limits to our ability to influence other organisations and governments. Nevertheless, we remain focused on the task and are committed to playing our part in the collective effort to enable the global transition. Find out more about our climate goals at at www.aviva.com/sustainability/climate and our sustainability ambition and action at www.aviva.com/sustainability.
- Aviva is a Living Wage, Living Pension and Living Hours employer and provides market-leading benefits for our people, including flexible working, paid carers leave and equal parental leave. Find out more at https://www.aviva.com/about-us/our-people/
- As at 30 June 2024, total Group assets under management at Aviva Group were £398 billion and our estimated Solvency II shareholder capital surplus as at 30 September 2024 was £7.6 billion. Our shares are listed on the London Stock Exchange and we are a member of the FTSE 100 index.
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