Aviva has today announced the completion of a £1.7 billion pensioner buy-in with the National Grid Electricity Group (“the Group”) of the Electricity Supply Pension Scheme (“the Scheme”).
The transaction, which completed in October 2024, included transitioning the Group’s existing longevity swap with Zurich Assurance Ltd to Aviva, and insures the benefits for 5,800 pensioner members of the Group.
Aon acted as the sole transaction adviser, covering actuarial, investment and broking aspects. Legal advice to the Group Trustee was provided by DLA Piper UK LLP. The Scheme Trustee was advised by Mayer Brown International LLP.
We’re especially proud that we can secure benefits for yet another signatory scheme of AFS’s Sustainability Principles Charter, reinforcing our commitment to this important initiative.
Sean Rooney, Senior Deal Manager at Aviva, said: “Our team worked closely with the Trustees and their advisers to support them with this important step to provide long-term security for their pensioner members. The transaction included the transition of the Group’s longevity swap, and throughout the process all parties have been flexible and focused on delivering a successful outcome. We’re especially proud that we can secure benefits for yet another signatory scheme of AFS’s Sustainability Principles Charter, reinforcing our commitment to this important initiative.”
Stephen Yandle, Chair of the Group Trustee Board said: “The Group Trustee is pleased to have been able to take the next important step on our de-risking journey. The transaction is great news for members in the Group, adding further protection to their benefits, and on terms that are fully aligned with our strategic objectives. It was a pleasure working in partnership with Aon and DLA Piper as part of this transaction, and we look forward to working closely with Aviva in the future.”
Tom Scott, Partner at Aon added: “We were pleased to support the Group Trustee with the successful execution of this transaction which marks a further step in implementing the Group’s risk settlement strategy. Entering into a longevity swap in 2018 allowed the Group to hedge longevity risk until it was in a position to move to buy-in. Having flexibility, via a future-proofed longevity swap contract with Zurich to transition to another insurer, enabled us to achieve an excellent outcome for the Group and its members.”
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View more information on Bulk Purchase Annuities at Aviva
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
About Zurich:
Zurich UK provides a suite of general insurance and life insurance products to retail and corporate customers. We supply personal, commercial and local authority insurance through a number of distribution channels, and offer a range of protection policies available online and through financial intermediaries for the retail market and via employee benefit consultants for the corporate market. Based in a number of locations across the UK - with large sites in Birmingham, Farnborough, Glasgow, London, Swindon and Whiteley - Zurich employs approximately 4,500 people in the UK. www.zurich.co.uk/.
Enquiries:
Matt West, Zurich UK, Media Relations Manager
07484517414
matt.west@uk.zurich.com
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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