Our business

Aviva completes £350m bulk annuity deal with Coats UK Pension Scheme

Two men in hard hates walking in between solar panels

Aviva today announces it has completed a £350 million bulk purchase annuity buy-in transaction with the trustees of the Coats UK Pension Scheme.

Aviva will insure the defined benefit pension liabilities for around 3,700 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 transaction was instigated by a joint working group of the scheme’s trustees and Coats Group plc management, which was established to build on past risk management actions and set the scheme on a journey towards full insurance.

The scheme trustees were independently advised throughout the process by Lane Clark & Peacock (de-risking) Redington (investment) and Sackers (legal).  Coats was advised by Isio.

Jamie Cole, Head of Bulk Purchase Annuity Origination at Aviva, said: “We’re extremely pleased that the Trustees of the Coats UK Pension Scheme selected Aviva to support their de-risking journey.  All parties worked collaboratively on this transaction which secures the benefits for a significant proportion of the scheme’s members and supports the Sponsor’s long-term ambition to remove risk from their balance sheet.  It is clear that Aviva’s sustainability commitment played an important part as it aligns with Coats’ own views.''

Chris Martin, Trustee Chair of the Coats UK Pension Scheme said: “We are delighted to have taken this further step in improving the security of Members’ benefits. The collaboration between the Trustees and Company and our respective advisers, including the outstanding support from our Pensions Office, has been absolutely at the heart of being able to deliver this outcome. Aviva’s sustainability commitment, and its alignment with our beliefs, was a key factor in the selection of our buy in partner.”

Jackie Callaway, CFO of Coats Group plc said: “The completion of the buy-in reflects a constructive and collaborative working relationship between Coats and the trustees, with Aviva helping us to achieve our objectives.  I would like to thank all involved for helping us get to this position, which will benefit all stakeholders.”

Michelle Wright, Partner at Lane Clark & Peacock said: “We are delighted to be able to help the Trustees secure members’ benefits with Aviva. The transaction highlights the importance of close collaboration between the Trustees and the sponsoring employer, enabling the Trustees to move swiftly in challenging markets.”

Nick Lewis, Managing Director at Redington said: "Nothing better than seeing a plan come together. It has been a privilege to see just how much progress can be made, when all stakeholders collaborate for the benefit of members."

Faith Dickson, Partner at Sackers said: “Huge team effort demonstrating the importance of being prepared so you can move quickly, good communication throughout, and some real hard work from the Coats’ pensions team.”

-ENDS-

Media Enquiries

Steve Whitelock

Wealth and Retirement

Notes to editors:

  • We are the UK’s leading Insurance, Wealth & Retirement business and we operate in the UK, Ireland and Canada. We also have international investments in Singapore, China and India.
  • We help our 18.5 million customers make the most out of life, plan for the future, and have the confidence that if things go wrong we’ll be there to put it right.
  • We have been taking care of people for 325 years, in line with our purpose of being ‘with you today, for a better tomorrow’. In 2021, we paid £30.2 billion in claims and benefits to our customers.
  • Aviva is a market leader in sustainability. 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.  Find out more about our climate goals at www.aviva.com/climate-goals and our sustainability ambition and action 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 https://www.aviva.com/about-us/our-people/
  • As at 30 June 2022, total Group assets under management at Aviva Group were £353 billion and our Solvency II shareholder capital surplus at 30 September 2022 was £8.8 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:
  • For the latest corporate films from around our business, subscribe to our YouTube channel: www.youtube.com/user/aviva

      More from our Newsroom