Givaudan completes £64 million bulk annuity deal

Flavours and fragrances manufacturer Givaudan has announced the defined benefit (DB) pension liabilities of its UK pension plan have been insured by Aviva.

The £64 million bulk purchase annuity transaction means the DB pension liabilities for the 277 members of the scheme are protected, with the insurance provider taking responsibility for the investment and longevity risk for plan members. Plan 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.

Robin Storey, chair of trustees for the Givaudan UK Pension Plan, said: “The long-term protection of our members’ benefits has been secured through this buy-in transaction.”

He explained that the detailed preparation and strong collaboration across risk settlement and investment workstreams led by Aon, actuarial advice from Willis Towers Watson, and legal advice from Eversheds Sutherland and Travers Smith, made it possible.

According to Jos Umans, head of benefits at Givaudan International SA, the business worked collaboratively with the trustees as part of a joint working group to achieve long-term security for members’ benefits.

“This is the culmination of a multi-year plan that has seen the company and the trustee systematically reduce risk via a combination of asset de-risking and member options exercises,” he said.

Jamie Cole, head of bulk purchase annuity origination at Aviva, expressed his delight at having worked with the trustee of the plan to complete this transaction, which he says brings security for pension plan members. He added that all parties worked well to deliver a smooth transaction, with close collaboration and pre-agreed terms helping to deliver a positive outcome.