Aviva has announced that it has completed a £142 million bulk purchase annuity buy-in transaction with the TI Group Pension Scheme, whose sponsoring employer is Smiths Group, a leading industrial technology company.
Aviva will insure the defined benefit pension liabilities of 1,224 pensioner 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 Aon.
Jamie Cole, Head of Bulk Purchase Annuity Origination at Aviva, said: “We are delighted to have been chosen to deliver this transaction which further adds to the strong backing for members of the TI Group Pension Scheme. Throughout the process, all parties have worked closely to deliver a smooth transaction and help the trustees achieve their objectives.”
Chris Surch, Chair of the Trustee of the TI Group Pension Scheme, said: “This is our sixth annuity tranche, continuing a well-established de-risking strategy for the Scheme. I am pleased that this was swiftly concluded when the opportunity arose, thanks to the dedication of our trustees, Smiths Group, our advisers and Aviva – all working as efficiently remotely as they had been when office based.”
Dominic Grimley, Risk Settlement adviser at Aon, said: “This transaction continues a trend of well-timed transactions for the Group, and was made possible by nimble decision-making from the Trustee and Smiths Group, capturing the market’s interest and de-risking without any funding cost”