The latest update from M&G for you;
M&G plc (“M&G”), a leading savings and investment firm, today announces it has completed a £150 million Bulk Purchase Annuity (BPA), securing the pension benefits of nearly 1,200 members of a scheme sponsored by a UK insurance company.
The transaction, executed by the Prudential Assurance Company Limited (“Prudential”), M&G’s wholly-owned subsidiary providing life and pensions solutions, is structured as ‘BPA Plus’ and was completed in June 2026. BPA Plus combines the security and certainty that a traditional BPA can provide with the opportunity for members to benefit from future investment outperformance. By combining the two with the scale of M&G’s £132bn With-Profits Fund, it enables schemes to secure members’ core benefits while also sharing in the potential for discretionary bonuses over time.
The Trustee selected M&G after a competitive process, recognising its strong financial position, proven track record and ability to deliver innovative solutions aligned to the Scheme’s objectives. Its focus on member experience and ability to support an efficient transition to buyout was particularly attractive.
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.
WTW acted as lead transactions adviser and Scheme Actuary to the Trustee with Clyde & Co providing legal advice and Mercer acting as the Trustee’s investment advisers.
Rosie Fantom, Head of Bulk Purchase Annuity Origination & Execution at M&G said: “We are delighted to have partnered with the Trustee to deliver this £150 million transaction, securing the benefits of nearly 1,200 members. This transaction demonstrates the strength of M&G’s BPA Plus proposition, combining the security of a bulk annuity with the opportunity for future upside through the potential for annual cash bonuses. We look forward to continuing to work with the Trustee as they progress towards buyout.”
Ben Todd, Senior Director, WTW, said: “The purchase of this buy-in policy follows an extensive buy-in readiness project undertaken by the Trustee, led by WTW and supported by the Trustee’s other advisers. The outcome achieved far exceeds expectations at the start of this journey, with M&G’s innovative BPA plus proposition and other flexibility around money purchase arrangements offering the potential for very positive outcomes for members.”
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