Under the deal, Aviva will be insuring the defined benefit pension liabilities of all 213 members, thereby removing their investment and longevity risk from the pension scheme
An Aviva office in Birmingham, UK. (Credit: Rept0n1x/Wikimedia Commons)
Aviva said that it has wrapped up a £95m bulk purchase annuity deal with LawDeb Pension Trustees, the sole corporate trustee of the British Bankers’ Association Pension Scheme.
Under the deal, the British insurance company will be insuring the defined benefit pension liabilities of all 213 members, thereby removing their investment and longevity risk from the pension scheme.
The British insurance company said that the process to appoint an insurer and negotiate terms was headed by LCP on behalf of LawDeb Pension Trustees. Gowling offered legal advice on the transaction, said the company while Barnett Waddingham and Womble Bond Dickinson also advised the British Bankers’ Association Pension Scheme.
Aviva bulk purchase annuity origination head Jamie Cole said: “We’ve worked closely with LCP to deliver this transaction using their streamlined process. This once again demonstrates that smaller schemes can access attractive pricing when they are well prepared and supported by an efficient process, even against the backdrop of recent market volatility.”
According to the insurance firm, despite the transaction, there will not be any change in the amount of the benefits for the members or the manner in which they are paid.
LCP partner Sam Jenkins said: “The British Bankers’ Association and Scheme navigated unprecedented market volatility to reach a successful transaction that provides long-term certainty for their members.
“Aviva worked closely with us and the Scheme to make the transaction a success. LCP’s streamlined process gave BBA and the Scheme certainty on costs and timings for the full buy-in and better access to the insurance market.”
Aviva recently closed a £350m annuity buy-in deal
Earlier this month, the British insurance company completed a £350m bulk purchase annuity buy-in deal with the Trustee of the Co-operative Pension Scheme (Pace). As per the deal, the insurance firm will be covering the insurance of the defined benefit pension liabilities of 2,300 members, and as a result, removing their investment and longevity risk from the Pace pension scheme.