Finnair lands buyout deal for DB scheme in record time

A full scheme buy-in, covering all 20 members of the Finnair Oyj Retirement Benefit Scheme, was completed in October. This was converted to a buyout in less than two months, according to Broadstone, which was the lead broker on the deal.

Both Broadstone and Aviva used their dedicated small scheme services to complete the transaction. The two firms ran a pilot last year involving five sub-£10m DB schemes to test Aviva’s Clarity service. Broadstone said this was the fastest it had completed a scheme’s journey from buy-in to buyout.

Arc Pensions Law provided legal advice to the trustees, while Aviva used its in-house legal team.

Nick Boyes, trustee director, said: “Broadstone identified at an early stage the suitability of the scheme for Aviva’s Clarity proposition with a fast-track option.

“Broadstone and Arc then worked quickly and diligently with Aviva to prepare the scheme, so it was suitable not just for the initial buy-in but to be in a position to convert it rapidly to the buyout afterwards – an incredible result that will save the scheme significant ongoing costs.”

Mark Channon, senior actuarial director at Broadstone, led the deal and said the scheme was “perfectly prepared” for the transaction, in part because the consultancy also provided actuarial and administration services.

Broadstone highlighted in a press release that data quality and certainty of benefits were important to the process.

Andrew Shaposhnikov, senior business development manager at Aviva, said: “The process worked seamlessly, thanks to excellent preparation by Broadstone and the trustees, and meant we were able to move from buy-in to buyout in under two months.

“This speed means less complexity for trustees and more time for our teams to focus on what matters: providing a smooth and high-quality experience for scheme members.”