The latest update from M&G plc;
M&G plc (“M&G”) announces that it has completed a £100million Bulk Purchase Annuity (“BPA”) transaction, securing the pension benefits of 550 members of the Miller Retirement Benefits Scheme, sponsored by Miller Insurance Services LLP (“Miller Insurance”), a leading independent specialist insurance and reinsurance broker headquartered in London.
This is the latest deal to be completed through M&G’s innovative ‘BPA Plus’ proposition, utilising the firm’s £132bn With-Profits Fund. BPA Plus combines the security of a traditional bulk purchase annuity with the scale of the With-Profits Fund, enabling schemes to secure members’ core benefits while also sharing in the potential for discretionary bonuses over time.
This transaction was executed by the Prudential Assurance Company Limited (“Prudential”), M&G’s wholly owned subsidiary providing life and pensions solutions. The Trustee was advised by LCP as risk transfer and investment adviser, Barnett Waddingham (part of Howden) as Scheme Actuary and administrator and Hogan Lovells as legal adviser.
The Trustee chose M&G due to its competitive pricing, commitment to deliver an accelerated transition to buy-out and the potential upside for members from discretionary bonus payments.
Rosie Fantom, Head of Bulk Annuity Origination & Execution at M&G, said: “We’re pleased to support Miller Insurance in providing long-term security for its pension scheme members. This transaction demonstrates the benefits of BPA Plus, combining the certainty of a bulk annuity with the opportunity to deliver enhanced outcomes over time. We look forward to continuing our partnership with the Trustee.”
Neil Perry, Miller Insurance, said: “This transaction is an important milestone in delivering greater certainty and security for our pension scheme members. We are pleased to have worked closely with the Trustee, M&G and our advisers to achieve a strong outcome that supports both members’ benefits and the long-term objectives of the Scheme.”
Daniel Barlow, Trustee, LawDeb, said: “We are delighted to have completed this transaction with M&G, securing members’ benefits while also offering the potential for enhanced outcomes in the future. The transaction was delivered in an efficient manner with great teamwork and collaboration between the trustee, sponsor and respective advisers.”
David Salter, LCP, said: “It has been a pleasure working alongside Daniel and the LawDeb team to design and then execute a process. We brought our experience from advising on the first BPA plus earlier this year to help the Trustee understand how the BPA plus offering compares against the wider market and then execute it effectively. This transaction once again shows the ability of schemes of this size to generate bespoke, and competitive, proposals from a range of insurers.”
M&G is a founding member of the BPA market with over 25 years of experience implementing and administering bulk annuity transactions, backed by a robust balance sheet and a firm commitment to meeting our customers’ needs. Building on the launch of BPA Plus, a key differentiator for M&G in the market, the business expects to achieve £3–£4 billion of annual BPA sales by 2027.
Be the first to comment