Our business

Aviva announces £26m bulk annuity deal with the ABI

Image of two people looking at paperwork

Aviva today announces it has completed a £26m bulk purchase annuity buy-in transaction with the Trustees of the  Association of British Insurers Pension & Assurance Scheme. This is the second transaction between Aviva and the Association of British Insurers Pension & Assurance Scheme, following a £10m transaction completed in 2017.

Aviva will insure the defined benefit pensioner liabilities for 191 members, removing the investment and longevity risk of these members from the Scheme. Members will see no change in the amount of their benefits or the way in which they are paid as a result of the transaction. 

The competitive tender process to select an insurer and negotiate terms was led by Mercer, with Shepherd and Wedderburn LLP providing legal advice.   

Jamie Cole, Head of Bulk Purchase Annuity Origination at Aviva, said: “We are delighted to have completed a second transaction with the Association of British Insurers Pension &  Assurance Scheme. 

"All parties worked closely to ensure the smooth and efficient completion of this transaction which provides greater security for Scheme members and shows Aviva’s flexibility in transacting with schemes of all sizes.” 

Philip Exact, Chairman of the Association of British Insurers Pension & Assurance Scheme’s Trustees, said: “We worked closely with the ABI and Mercer over the last 12 months to plan, and then take, this important step on our journey to further reduce the Scheme’s risks. 

"Aviva were selected after a competitive tender process and we are very pleased to have successfully completed this transaction.” 

Deborah McWhinney , Risk Transfer Principal at Mercer, said: “We are very pleased to have been able to work with the Trustees again and bring this second tranche of pensioners to the market. 

"This is a further significant step for the Trustees in their de-risking journey and represents a positive outcome for the long term security of members’ benefits. Despite ongoing uncertainty, we continue to see pension schemes concentrating on de-risking activity and we are looking forward to seeing more transactions throughout the year”.

Ends

Media Enquiries:

Daniel Skipp
daniel.skipp@aviva.com
07385 404 972

Notes to editors:

  • For information on how Aviva is helping our people, customers and communities impacted by COVID-19 visit: www.aviva.com/covid-19-our-response/
  • We exist to be with people when it really matters, throughout their lives. We have been taking care of people for more than 320 years, in line with our purpose of being ‘with you today, for a better tomorrow’. In 2020, we paid £30.6 billion in claims and benefits to our customers.
  • Aviva is invested in our people, our customers, our communities and our planet. In 2021, we announced our plan to become a Net Zero carbon emissions company by 2040, the first major insurance company in the world to do so. This plan means Net Zero carbon emissions from our investments by 2040; setting out a clear pathway to get there with a cut of 25% in the carbon intensity of our investments by 2025 and of 60% by 2030; and Net Zero carbon emissions from our own operations and supply chain by 2030. Aviva has been leading this agenda for decades: Aviva was the first international insurer to go operationally carbon neutral in 2006 and we are champions of renewable energy and energy storage at our offices, allowing us to achieve our 2030 carbon reduction target (70% reduction on 2010 levels) 10 years early. Find out more about our climate goals at www.aviva.com/climate-goals and our sustainability ambition at www.aviva.com/sustainability.
  • Aviva is a Living Wage and Living Hours employer and provides market-leading benefits for our people, including flexible working, paid carers leave and equal parental leave. Find out more at www.aviva.com/social-purpose
  • We are focused on the UK, Ireland and Canada where we have leading market positions and significant potential. We will invest for growth in these markets. We will also transform our performance and improve our efficiency. Our transformation will be underpinned by managing our balance sheet prudently, reducing debt and increasing our financial resilience. We also have strategic investments in Singapore, China and India.
  • At 30 June 2021, total Group assets under management at Aviva Group are £522 billion and our Solvency II shareholder capital surplus is £12 billion. Our shares are listed on the London Stock Exchange and we are a member of the FTSE 100 index.
  • For more details on what we do, our business and how we help our customers, visit www.aviva.com/about-us
  • The Aviva newsroom at www.aviva.com/newsroom includes links to our spokespeople images, podcasts, research reports and our news release archive. Sign up to get the latest news from Aviva by email.You can follow us on:
  • Twitter: www.twitter.com/avivaplc/
  • LinkedIn: www.linkedin.com/company/aviva-plc
  • Instagram: www.instagram.com/avivaplc
  • For the latest corporate films from around our business, subscribe to our YouTube channel: www.youtube.com/user/aviva

      More from our Newsroom