Aviva completes £140m bulk annuity deal with the Guilbert UK Retirement Benefits Plan

Aviva has completed a £140 million bulk purchase annuity full scheme buy-in transaction with the Trustee of the Guilbert UK Retirement Benefits Plan¹ (“Plan”) which is sponsored by Office Depot UK Pension Sponsor Limited.

Aviva has insured the Plan liabilities for around 1,500 members, removing the investment and longevity risk of these members from the Plan. Members will see no change in the benefits they receive as a result of the transaction.

The tender process was led by PwC providing transaction advice to both the Trustee and the sponsoring Company, with Travers Smith providing legal advice and Mercer providing administration, Scheme Actuary and Investment advice to the Trustee.

Emma Thomas, BPA Deal Manager at Aviva, said: “We’re delighted the Trustee selected Aviva to secure member benefits and we will continue to work closely with them to ensure a smooth transition. The transaction was tightly managed and a close collaboration between teams, plus careful preparation helped deliver a smooth and efficient process – an increasingly important consideration for all parties in this busy market.”

Mike Roberts, Director at PAN Trustees and Chair of the Trustee of the Guilbert UK Retirement Benefits Plan, said: “We are delighted to have completed this bulk annuity transaction with Aviva, which will provide greater security and certainty for members' benefits in the Plan. With a lot of moving pieces and  the constantly evolving landscape of the BPA market, PwC led the process with excellent support from Travers Smith and Mercer to carefully navigate a number of factors to reach this great outcome for both the Trustee and the Company.”

Jani Singh, Risk Transfer deal lead at PwC, said: “As lead advisor to both Company and Trustee, in a market that is busier than ever, we are pleased to have worked to design and transact a deal that met the objectives of both the Trustee and Company. This included paying particular attention to the preparation stage, allowing us to conduct a multiple insurer process. The transaction is the culmination of collaboration by all parties, and we are delighted to reach a successful outcome for the Scheme and its members.”

Michelle Doman, Scheme Actuary of the Plan at Mercer, said: “As a long standing partner with the Trustee of the Plan, we are delighted to see this significant milestone reached and to have been part of the advisory team working with the Trustee and the Company, in this success story.”

Niamh Hamlyn, Partner at Travers Smith, said: “We were delighted to continue our longstanding partnership with the Trustee to achieve this significant milestone for members of the Guilbert Plan. This transaction was a great advert for the benefits of teamwork; close collaboration with the teams at PwC, Mercer and Aviva meant that this transaction could be successfully delivered to tight timescales, ensuring positive member outcomes for the years to come.”

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References:

^{1. Deal completed 1 August 2023}

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