Insurance organisation Aviva has completed a pension buy-in transaction worth £1.7 billion with Aviva Life and Pensions UK.
The buy-in arrangement will insure the liabilities of Aviva’s defined benefit (DB) pension scheme, the Aviva Staff Pension Scheme.
The scheme has approximately 5,800 members, consisting of 4,300 deferred members and 1,500 current pensioner members.
Consultancy Hymans Robertson advised the pension scheme trustees.
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.
“Combined with the existing longevity swap, this buy-in means that the scheme has now hedged a material amount of longevity and investment risk.”
Michael Abramson, partner at Hymans Robertson, added: “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 £36 billion.
“Buy-ins such as these show how insurance can be a meaningful part of the de-risking strategy for even the largest pension funds.”