The insurance policy covers nearly a quarter of the scheme’s uninsured pensioner liabilities
European life and pensions consolidator Phoenix Group has completed a £144m ($186m) buy-in with the Trustee of the Aegon UK Staff Retirement and Death Benefit Scheme.
As per Phoenix, the bulk purchase annuity insurance policy covers nearly a quarter of the scheme’s uninsured pensioner liabilities.
Trustee of the Aegon UK Staff Retirement and Death Benefit Scheme chairman Maurice Brunet said: “This is a key milestone for the Scheme being the first buy-in as part of our long-term de- risking strategy. It helps to improve long-term security for all of our members by reducing the Scheme’s exposure to future investment and longevity risks.”
Phoenix Group was advised by Hymans Robertson and Burness Paull
In the process of choosing an appropriate insurer and negotiating terms, the Aegon UK Staff Retirement and Death Benefit Scheme was advised by Hymans Robertson and Burness Paull.
Phoenix Group bulk purchase annuities head Justin Grainger said: “We are delighted to have supported the Trustee of the Aegon UK Staff Retirement and Death Benefit Scheme. It was a pleasure to work with the Trustee and its advisors to complete a transaction quickly and smoothly despite challenging market conditions.
“We recognise the opportunities and growth that the BPA market provides, and will continue to offer attractive solutions to pension scheme trustees. This transaction takes Phoenix’s year-to-date bulk annuity volumes to approaching £2bn and further demonstrates our commitment to this market.”
Hymans Robertson partner Michael Abramson said: “Hymans Robertson are very pleased to have helped the Trustee achieve a great outcome for the Scheme and its members. Phoenix’s collaborative approach led to a smooth and quick implementation despite this being a record year for bulk annuity transactions.”
In May this year, Phoenix Group completed a £460m ($595m) bulk purchase annuity with Trustee of the Marks and Spencer Pension Scheme covering a further portion of its pensioner members.
The buy-in covers nearly 5,000 current pensioners alongside the transaction completed by the Marks and Spencer Pension Scheme last year, increasing the insurance coverage to nearly two-thirds of the Scheme’s total pensioner liabilities.