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Aviva completes £1.7 billion buy-in with the Aviva Staff Pension Scheme

Aviva Life & Pensions UK Ltd announces the completion of a £1.7 billion bulk annuity buy-in transaction with the Aviva Staff Pension Scheme. Through the transaction Aviva will insure the defined benefit pension liabilities of approximately 4,300 deferred and 1,500 current pensioner Scheme members and remove the investment and longevity risk of these members from the Scheme.

Members will experience no change in the amount of benefits they receive or the way in which they are paid as a result of the deal. The strong financial position of the Scheme has led the Trustee to complete their first buy-in as part of a long-term plan to de-risk the scheme.

The Scheme Trustee was independently advised throughout the process by Hymans Robertson, Linklaters and Redington.

Brian Bussell, Chair of the Trustee of the Aviva Staff Pension Scheme, said:

“The Trustee is delighted to have entered into this first buy-in to help secure the benefits due to our members, working closely with our advisers and Aviva to do so.  Combined with the existing longevity swap, this buy-in means that the Scheme has now hedged a material amount of longevity and investment risk.”

Jason Windsor, Chief Financial Officer, Aviva plc, said:

“This transaction capitalises on Aviva’s expertise in the pension de-risking market and builds on the strong funding position of the Scheme. This is a result of the years of joint stewardship between Aviva and the Trustee in building the financial strength of the Scheme. We look forward to continuing this relationship as the fund enters this new de-risking phase.”

Tom Ground, Managing Director of Defined Benefit Solutions at Aviva, said:

“This latest transaction underlines our skills and expertise in the pension de-risking market, and I am delighted that we have secured this transaction with the Scheme. We have significantly strengthened our pension de-risking capability in recent years and by securing this transaction we have once again shown that Aviva can service a wide variety of schemes in the market.”

Michael Abramson, Partner at Hymans Robertson, said:

“We are delighted to have helped the Trustee take this meaningful step in its de-risking journey. Despite political uncertainty and market volatility, 2019 has already proven a record year for the bulk annuity market, with total transaction volumes in excess of £36bn. Buy-ins such as these show how insurance can be a meaningful part of the de-risking strategy for even the largest pension funds.”

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Ben Moss

Corporate and Workplace

Notes to editors:

  • Aviva is a leading international savings, retirement and insurance business. 
  • Our aim is to earn our customers’ trust as the best place to save for the future, navigate retirement and insure what matters most to them. Last year, we paid c.£33 billion in claims and benefits on behalf of our 33 million customers.
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