On the go: The Aegon UK Staff Retirement and Death Benefit Scheme has completed a £144m buy-in with Phoenix Group.
The insurance policy covers around a quarter of the plan’s uninsured pensioner liabilities.
According to Maurice Brunet, chairman of the trustee of the Aegon scheme, this is a key milestone “being the first buy-in as part of our long-term derisking strategy”.
He said: “It helps to improve long-term security for all of our members by reducing the scheme’s exposure to future investment and longevity risks.”
The scheme trustees were advised through the process by Hymans Robertson and Burness Paull.
Justin Grainger, head of bulk purchase annuities at Phoenix Group, said that the company recognises the “opportunities and growth that the bulk purchase annuities market provides, and will continue to offer attractive solutions to pension scheme trustees”.
“This transaction takes Phoenix’s year-to-date bulk annuity volumes to approaching £2bn and further demonstrates our commitment to this market,” he added.
Bulk annuity deals for UK pension schemes reached £17.6bn in the first half of 2019, up from £7.8bn in the same period of 2018, according to research from LCP published in August.
