M&G Completes on BPA Transaction

The latest news from M&G for you;

M&G plc (“M&G”) has completed a £100 million Bulk Purchase Annuity (“BPA”) transaction, securing the benefits of 650 members of a pension scheme sponsored by a leading UK financial services company.

The scheme’s Trustee chose M&G for its strong administration, financial strength and competitive pricing. M&G’s focus on delivering a positive member experience also aligned with the Trustee’s priorities, while the potential for discretionary bonuses offered an additional benefit for members.

This is the latest deal to be completed through M&G’s innovative ‘BPA Plus’ proposition, utilising the firm’s £138bn With-Profits Fund and was completed in July. 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.

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 customer needs. Building on the success of BPA Plus, the business expects to achieve £3–£4 billion of annual BPA sales by 2027.

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 Howden Employee Benefits, while legal advice was provided by Mills and Reeve. Howden Employee Benefits also provided actuarial and administration support to the scheme.

Rosie Fantom, Head of Bulk Annuity Origination & Execution at M&G, said: “This transaction demonstrates how trustees are increasingly looking beyond securing benefits and focusing on the value that can be delivered to members over the long term. Through BPA Plus, these pension scheme trustees have secured members’ benefits while also giving them the opportunity to benefit from potential future discretionary bonuses through M&G’s With-Profits Fund. We are pleased to be supporting the Trustee and look forward to providing members with the security and service they expect throughout their retirement.”

Richard Gibson, Head of Risk Transfer at Howden Employee Benefits, said: “We are delighted to have delivered this transaction for a leading financial services client.  The scheme benefited from being exceptionally well prepared and it’s a sign of a healthy market that we obtained several very competitive bids.  My team helped the Trustee to look beyond just pricing and assess the full range of solutions on offer in the market and the quality of delivery from insurers.”

Chair of Trustees, said: “We are really pleased to have selected M&G as our chosen insurer. The Trustee carefully assessed the strength of administration offering from the providers in the market and we have coupled quality with a brand our members can trust. This is the culmination of several years of work and we are grateful to the employer for their support, as well as the expert advice of the team at Howden Employee Benefits.”