Aviva completes a £1.7 billion buy-in with the National Grid Electricity Group of the Electricity Supply Pension Scheme

Aviva has today announced the completion of a £1.7 billion pensioner buy-in with the National Grid Electricity Group (“the Group”) of the Electricity Supply Pension Scheme (“the Scheme”).

The transaction, which completed in October 2024, included transitioning the Group’s existing longevity swap with Zurich Assurance Ltd to Aviva, and insures the benefits for 5,800 pensioner members of the Group.

Aon acted as the sole transaction adviser, covering actuarial, investment and broking aspects. Legal advice to the Group Trustee was provided by DLA Piper UK LLP. The Scheme Trustee was advised by Mayer Brown International LLP.

We’re especially proud that we can secure benefits for yet another signatory scheme of A4S’s Sustainability Principles Charter, reinforcing our commitment to this important initiative.

Sean Rooney, Senior Deal Manager at Aviva, said: “Our team worked closely with the Trustees and their advisers to support them with this important step to provide long-term security for their pensioner members.  The transaction included the transition of the Group’s longevity swap, and throughout the process all parties have been flexible and focused on delivering a successful outcome. We’re especially proud that we can secure benefits for yet another signatory scheme of A4S’s Sustainability Principles Charter, reinforcing our commitment to this important initiative.”

Stephen Yandle, Chair of the Group Trustee Board said: “The Group Trustee is pleased to have been able to take the next important step on our de-risking journey. The transaction is great news for members in the Group, adding further protection to their benefits, and on terms that are fully aligned with our strategic objectives. It was a pleasure working in partnership with Aon and DLA Piper as part of this transaction, and we look forward to working closely with Aviva in the future.”

Tom Scott, Partner at Aon added: “We were pleased to support the Group Trustee with the successful execution of this transaction which marks a further step in implementing the Group’s risk settlement strategy. Entering into a longevity swap in 2018 allowed the Group to hedge longevity risk until it was in a position to move to buy-in. Having flexibility, via a future-proofed longevity swap contract with Zurich to transition to another insurer, enabled us to achieve an excellent outcome for the Group and its members.”

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View more information on Bulk Purchase Annuities at Aviva

Enquiries:

Shelley Kernaghan

Retirement and Annuities

About Zurich:

Zurich UK provides a suite of general insurance and life insurance products to retail and corporate customers. We supply personal, commercial and local authority insurance through a number of distribution channels, and offer a range of protection policies available online and through financial intermediaries for the retail market and via employee benefit consultants for the corporate market. Based in a number of locations across the UK - with large sites in Birmingham, Farnborough, Glasgow, London, Swindon and Whiteley - Zurich employs approximately 4,500 people in the UK. www.zurich.co.uk/.

Enquiries: 

Matt West, Zurich UK, Media Relations Manager
07484517414
matt.west@uk.zurich.com

Notes to editors:

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