M&G has completed a £100m buy-in with Miller Insurance Services, an independent London-based insurance and reinsurance broker.
The transaction secures the benefits of 550 members of the Miller Retirement Benefits Scheme and was completed using M&G’s BPA Plus service. This combines bulk purchase annuities (BPAs) with M&G’s £132bn With-Profits Fund, allowing the sponsor access to potential investment returns.
Neil Perry, chief financial officer at Miller Insurance, said: “This transaction is an important milestone in delivering greater certainty and security for our pension scheme members. We are pleased to have worked closely with the trustees, M&G and our advisers to achieve a strong outcome that supports both members’ benefits and the long-term objectives of the scheme.”
David Salter, a partner in LCP’s risk transfer team, said: “We brought our experience from advising on the first BPA Plus deal earlier this year to help the trustees understand how the BPA Plus offering compares against the wider market and then execute it effectively.
“This transaction once again shows the ability of schemes of this size to generate bespoke, and competitive, proposals from a range of insurers.”
LCP was the lead adviser on the deal, while Hogan Lovells provided legal advice to the trustee board.
Standard Life insures subsidiary’s scheme for £260m
Earlier this week, Standard Life announced a £260m buy-in with the ReAssure Staff Pension Scheme, securing the benefits of around 2,750 members.
The transaction was completed last month and includes “residual risk cover”, according to a press release from the insurer.
Andrew Ward, partner and head of risk transfer at Mercer, which was the lead adviser on the deal, explained that the residual risk feature “acknowledged the individual scheme’s circumstances, giving the trustee confidence in the outcome achieved”.
The scheme is sponsored by ReAssure, which Standard Life acquired in 2020 when it was still operating under the Phoenix brand. Ward said this relationship “required due diligence and strong governance from the trustee” to manage potential conflicts of interest.
Chris Martin, chair of the ReAssure scheme’s trustee board and a professional trustee at Independent Governance Group, said: “This was a complex project and I am grateful for Standard Life’s support in achieving this outcome… Member experience has been at the forefront of our mind throughout this process and Standard Life have demonstrated their alignment and commitment in this respect”.
Emma Haylock, bulk annuity transaction manager at Standard Life, added: “Reaching this stage reflects the close collaboration between the trustees, sponsor and advisers over several months. By working together with a shared focus on achieving the right outcome, we’ve been able to support a transaction that strengthens long-term security for all members.”
