Aviva today announces it has completed a £103million bulk purchase annuity transaction for the Homestyle 2007 Pension Scheme.
Aviva will insure the defined benefit pension liabilities of all 1,294 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 EY on behalf of Homestyle Pension Company Limited, the sponsoring employer of the pension scheme. BESTrustees is an independent Trustee to the Homestyle 2007 Pension Scheme. They were advised by Isio and received legal services from Squire Patton Boggs. Homestyle Pension Company Limited received legal advice from Addleshaw Goddard.
Jamie Cole, Head of Bulk Purchase Annuity Origination at Aviva, said: “We are delighted to have worked with the trustee of the scheme to complete this transaction which brings security for their pension scheme members. All parties have worked well to deliver a smooth transaction, with close collaboration and pre-agreed terms helping deliver a positive outcome.”
Taylor Dewar, Partner at EY-Parthenon, commented: “The bulk annuity purchase for the Homestyle 2007 Pension Scheme is a positive outcome for both the scheme members and the sponsoring employer. We are particularly pleased to have been able to move quickly to complete this transaction, giving our client confidence in the transaction in turbulent markets.”
Rachel Tranter, Director at BESTrustees and Chair of Trustee for the Scheme, said: “I am really pleased we’ve been able to complete this transaction, which materially improves the security for all members of the pension scheme. The transaction required all parties to work collaboratively and at speed to take advantage of attractive pricing in the market. It was a great team effort and I am delighted that we’ve been able to bring some welcome news to the scheme members.”
Richard Hassan, Scheme actuary and Director at Isio, said: “I am incredibly proud of the effort and problem solving skills applied by the whole team to enable this transaction to take place in such short timescales. It was a highly complex task to prepare it for buy-out ready. This is a great result for all parties, in particular the members.”
-ENDS-
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/
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