Aon: Buy-ins boost sponsors’ share prices
Ahead of a new research series from Pensions Expert into small scheme bulk annuities, members of the Endgame Perspectives Group explore how streamlined services have developed, their limitations, and how they can better serve pension schemes and members.
Food manufacturing company Bakkavor has secured a £160m full scheme buy-in for its defined benefit pension scheme with Rothesay, just months after it was acquired.
Research from Standard Life shows how priorities vary depending on the size of the scheme, but the pricing of bulk annuities remains the key determining factor for most trustee boards.
Two buy-in deals worth less than £20m in total were announced this week, further evidence of the healthy market for small pension schemes seeking insurance transactions.
The development means 455 people are now covered by individual annuity policies, after Utmost insured the Noble Foods Limited Pension Scheme last year.
The latest headlines from the bulk annuities sector, including a £1m micro-scheme buy-in for Legal & General and a listed services company’s plan to insure two DB schemes.
Improving funding levels are giving defined benefit schemes more endgame options, but many have yet to put clear governance frameworks in place for surplus and long-term decision-making.
New research from Standard Life indicates that many defined benefit (DB) trustee boards are considering in-specie transfers of illiquid assets to aid their preparation for bulk annuity transactions.
The latest headlines from the bulk annuities sector, including deals for Aviva, M&G, and Canada Life, as well as details of Just Group’s recent acquisition by Brookfield Wealth Solutions.
Sole trustee arrangements are on the rise as member-nominated trustees are declining, according to data obtained through a Freedom of Information Act request.
Bulk annuities remain a key element of most defined benefit pension schemes’ endgame planning, but running on and accessing surplus is becoming a more popular option.