Scottish Widows completes £54m bulk annuity transaction


Scottish Widow has secured a £54 million pensioner buy-in arrangement with the Barloworld UK Pension Scheme.

The buy-in covers a portion of the scheme’s pensioner liability and is a continuation of the global distributor’s de-risking strategy.

This transaction signals the second bulk annuity transaction for Scottish Widows. The pensions provider secured a £400 million pensioner buy-in with the Wiggins Teape Pension Scheme last November.

Andrew Bannister, chairman of trustees for the scheme, says: “This buy-in is part of our long term strategy to de-risk our pensioner liabilities and I am very pleased that we have been able to complete this arrangement with Scottish Widows following a competitive process run by KPMG. The Scottish Widows’ team has been flexible and responsive to our needs in helping us to complete the buy-in on attractive terms.”

Mike Edwards, head of origination and structuring, bulk annuities at Scottish Widows, says: “We are proud that the trustees have chosen to insure members’ benefits with us as part of their ongoing de-risking plan. Their proactivity, along with the preparatory work they had done with their advisers, meant they were able to conclude the transaction in a shortened timescale. Barloworld is an important client of Lloyds Banking Group’s commercial banking division in the UK and we are pleased to strengthen an existing relationship through this arrangement.”