Standard Life has insured the defined benefit (DB) pension scheme of flooring specialist Amtico in a £52m buy-in deal, one of several announced this week.
The transaction was completed last month and secures the benefits of 425 members. Amtico’s defined contribution (DC) pension arrangement is also managed by Standard Life, which the insurer said would ensure that members with both kinds of pension would retain the link between them.
Alex Oakley, bulk annuity transaction manager at Standard Life, said the long-standing relationship between the pension scheme and the insurance company was “a strong example of how continuity and collaboration can drive successful outcomes for pension schemes”.
“In this case, it’s rewarding to support the needs of employers with both DB and DC schemes, and in doing so, ensure members have a more integrated and streamlined retirement planning experience,” Oakley added.
Jason Shelley, HR director at Amtico, said: “Since 2015, Standard Life has provided our DC members with high levels of customer service and continues to develop its member experience and engagement solutions, particularly online. This transaction means that all our DB, DC master trust, and hybrid members now have the comfort of having their funds secured with, and managed and administered by, a long-standing, trusted partner.”
Portakabin locks in £160m buy-in for DB scheme
Aviva has insured a DB pension scheme sponsored by modular building manufacturer Portakabin for £160m.
The deal to insure the SG Pension Fund was finalised in August and secures the benefits of more than 1,900 members, Aviva said in a press release.
Similar to Standard Life’s agreement with Amtico, Aviva had also previously taken on Portakabin’s DC scheme into its master trust. The insurance company said this would also support members to easily access additional voluntary contributions, which are invested in the Aviva Master Trust.
Matt Cook, associate partner at Aon, which advised on the deal, said: “This transaction is a great example of how having nimble governance in place, along with a clear focus on objectives, can drive the best outcome from the insurance market.”
Charity secures £15m buy-in with L&G
Legal & General (L&G) has sealed a £15m buy-in with an unnamed UK charity, insuring the benefits of approximately 120 pensioners and deferred members.
Ray Hughes, director at consultancy group Hughes Price Walker, which advised on the deal, said: “Completed in under six months, this buy-in represents a significant step towards full buyout and delivers real value for both members and the sponsoring charity.
“The terms secured were attractive and affordable, enabling the trustees to eliminate substantial risk and future cost from the scheme. For the charity, this means greater financial certainty and the ability to concentrate more fully on its core charitable activities, while members gain the reassurance of long-term benefit security.
“Achieving this outcome so efficiently reflects the careful preparation of all parties and the benefit of experienced, specialist advice in a competitive market.”
