Avon Cosmetics has completed a £235 million bulk purchase annuity transaction for its pension plan.
The transaction was carried out by insurance and asset management firm Prudential Assurance, a wholly-owned subsidary of savings and investments business M and G.
It has secured the pension benefits of more than 3,000 members of the Avon Cosmetics pension plan.
The trustees chose M and G due to its ability to insure and administer the plan’s complex benefit structure, as well as the enhanced level of support it offered in the plan’s ongoing management.
They were advised on the transaction by Willis Towers Watson (WTW) as risk transfer adviser and scheme actuary, CMS as legal advisers, and SEI as investment adviser.
Michelle Parczuk, chair of trustees and chief people officer at Avon, said: “This buy-in helps to provide greater certainty to members about the security of their benefits and represents a pivotal moment in the plan’s de-risking journey. My thanks to everyone involved for a great team effort in making this happen.”
Rosie Fantom, head of bulk annuity origination and execution at M and G, added: “This transaction marks an important step in securing the future benefits of more than 3,000 plan members. It highlights our ability to deliver tailored solutions for complex schemes and reinforces our focus on providing certainty and confidence for trustees and members alike.”
Gemma Millington, senior director at WTW, said: “It was a pleasure to work with the trustees, Avon, M and G, and the wider advisory teams to deliver the transaction objectives. In particular, the trustees were focused on ensuring the buy-in achieved an optimal outcome for members, including the preservation of all member options and coverage of complex plan benefits. We’re seeing strong market competition delivering attractive pricing and pushing insurers to continually improve member experience.”
