Bulk annuities latest: M&G strikes £100m ‘BPA-plus’ deal with financial services firm

This means the insurance deal is combined with M&G’s £138bn With-Profits Fund, giving the pension scheme access to potential additional investment returns to pay discretionary bonuses.

Rosie Fantom, head of bulk annuity origination and execution at M&G, said: “This transaction demonstrates how trustees are increasingly looking beyond securing benefits and focusing on the value that can be delivered to members over the long term.”

Richard Gibson, head of risk transfer at Howden Employee Benefits, added: “The scheme benefited from being exceptionally well prepared, and it’s a sign of a healthy market that we obtained several very competitive bids.”

The pension scheme’s trustee board was advised by Howden Employee Benefits, with legal advice provided by Mills and Reeve.

Separately, Just Group has insured the pension scheme of an unnamed manufacturing firm for £11m. The buy-in covers 87 members, according to a press release from Cartwright, which advised on the deal.

Dean Wetton Advisory was the broker for the deal, while legal advice was provided by Burges Salmon.

Tony Grist, director at Cartwright Pension Trusts, said: “A successful buy-in is the result of careful preparation and a clear long-term strategy. By working closely with the trustees throughout the process, we helped ensure the scheme was well positioned to move forward when the opportunity arose. The scheme’s strong funding position provided the trustees with the flexibility to progress their de-risking strategy.” 

Dean Wetton, managing director at Dean Wetton Advisory, said the pension scheme was “well prepared to enter the market”, especially given its strong funding position.

Wetton also said the deal was a milestone for his firm, which is seeking to establish itself as a bulk annuity broker.

“We are proud to have demonstrated our ability to deliver competitive outcomes alongside the market’s established names,” he added.