Aviva Life & Pensions UK Ltd announces the completion of a £3m buy-in transaction with the Cruden Investment Limited Retirement Benefits Scheme (the Scheme). Cruden Investment Limited is part of Cruden Holdings, one of Scotland’s largest development and construction groups.
The transaction announced today follows a previous £7m pensioner-only transaction completed in 2018. In completing this latest buy-in, the Trustees have now successfully transferred all remaining Defined Benefit liabilities to Aviva.
The process was run on behalf of the Trustees by PwC as lead transaction advisor while Burness Paull LLP and Barnett Waddingham provided legal and actuarial support respectively.
Kevin Reid, Trustee and Chief Executive of Cruden Investment Limited, said: “This is a fantastic result for both the Trustee and the Company. To be able to secure benefits for all members by building on our strong pensions relationship with Aviva is a great outcome. Working with PwC as an independent transaction focused advisor, who led the market approach while collaborating with the actuarial and other incumbent advisors to the Scheme, meant we were well placed and informed to exploit rapidly changing market conditions in early 2022. This meant that no further contribution was required by the Company, who has now fully insured all of its defined benefit pensions risk with Aviva.”
Jamie Cole, Head of Bulk Purchase Annuity Origination at Aviva, said: “We’re delighted to have helped the Trustees complete their long-term de-risking strategy for the scheme. As a whole of market provider Aviva works with schemes of all sizes coming to market. In this case, our ongoing relationship with the scheme and the up-front preparation made for a smooth and efficient transaction.”
Ross Breckon, Pension Risk Transfer Project Lead at PwC, added: “We are pleased to have supported the Trustees in securing this deal for their members. It is a great example that shows smaller schemes can achieve their objectives in the pensions insurance market by leveraging the know-how of an independent deals focused advisor. Based on our understanding of the market and the Scheme specific factors in play, we took a different approach to the market which meant we could secure the deal and the desired terms for the Trustees in an increasingly busy market. ”
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