Aviva Life & Pensions UK Ltd announces the completion of a £875 million bulk annuity buy-in transaction with the Aviva Staff Pension Scheme. This is the second deal with the Scheme, having announced a £1.7 billion transaction in October last year*
Aviva will insure the defined benefit pension liabilities of 2,868 members, removing the investment and longevity risk of these members from the Scheme. Members 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 Origination 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.”
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Katy Hurren
Retirement
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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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