- The pension scheme full buy-in insures £1.3bn of liabilities and secures benefits for c19,000 members.
- The transaction includes the novation of an existing longevity swap and a transfer of illiquid assets.
Aviva has today announced the completion of a £1.3 billion bulk purchase annuity full buy-in with The RAC (2003) Pension Scheme. The transaction - completed in August 2024 - secures the benefits for all the scheme’s c19,000 members.
The deal highlights Aviva’s capability to support clients with complex schemes who are focused on securing member benefits. Features of the deal included a novation of the scheme’s existing longevity swap and the transfer of illiquid assets.
The scheme trustees were advised by Hymans Robertson and legal advice was provided by Linklaters LLP.
At Aviva, we pride ourselves on reaching successful outcomes for schemes, so we’re really pleased to have secured benefits for RAC scheme members. This transaction was complex and required the expertise and commitment of all parties.
Andy Morley, Senior Deal Manager at Aviva, said: “At Aviva, we pride ourselves on reaching successful outcomes for schemes, so we’re really pleased to have secured benefits for RAC scheme members. This transaction was complex and required the expertise and commitment of all parties.”
Brian Bussell, Chair of Aviva Staff Pension Trustee Ltd, said: “We are delighted to have completed this complex transaction covering all the benefits due to members of the RAC (2003) Pension Scheme, providing them with the additional security of a full scheme buy-in. The Trustee is grateful for the hard work of its advisors and in-house team in getting this transaction over the line.”
Iain Pearce, Partner at Hymans Robertson, added: “We’re delighted to have advised on this transaction to secure benefits for members. Transactions of this size inevitably have a number of complexities and we’re delighted to have applied our longevity swap conversion and £1bn+ transaction expertise to work closely with all parties to smoothly reach this full scheme buy-in.”
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Media enquiries:
Shelley Kernaghan
Retirement and Annuities
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Phone
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+44 (0) 7800 692 266
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Email
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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