On the go: The Aon Bain Hogg Pension Scheme section of the Aon Retirement Plan has completed a £510m pensioner buy-in with Scottish Widows.
This is the plan’s fourth pensioner buy-in and the second for the section, representing a further step on its long-term derisking journey, a statement read.
The scheme trustees were advised by Aon and CMS, and Scottish Widows was advised by Herbert Smith Freehills.
Andy Kieran, chair of trustees of the Aon Retirement Plan, noted that the trustees have been working with the scheme’s advisers “over a number of years to manage risk in the plan and enhance the security of members’ benefits”.
“We are very happy to have formed this partnership with Scottish Widows and this buy-in, completed in a very short timeframe in what has been a challenging year in financial markets, is another important step in the plan’s derisking journey,” he said.
Mike Edwards, partner at Aon, added that the transaction was enabled by the clear objectives set by the trustee and a bespoke process designed to enable the scheme to achieve those aims, by taking advantage of current bulk annuity market dynamics.
“Over 2020 these dynamics have been characterised by intermittent periods of heightened market volatility and insurer appetite,” Mr Edwards said.
