Browsing: Pension Risk Transfer

£270m deal is the third buy-in that Aviva has transacted with schemes sponsored by WM Morrison Supermarkets Limited.

BMO Insurance will issue annuities covering the responsibility for pension benefits of approximately 860 pensioners and beneficiaries.

£63m deal covers the pensions of all 570 members.

There has been significant activity in bulk purchase annuity buy-ins in the UK in recent years, which at some point will need to move to buy-out so that the original scheme can wind-down.

The bulk annuity market has high barriers to entry. Firms require significant long-term capital and specialist expertise, including asset sourcing, actuarial modelling and risk management, and regulatory approval is not straightforward.

Gareth Truran of the Bank of England’s Prudential Regulation Authority offers a regulator’s view of the UK bulk purchase annuity market.

Shelly Beard, Managing Director at WTW, offers her views on the state of play in the UK pension risk transfer market as we approach the halfway point of 2025.

The aggregate funding position of UK defined benefit pension funds potentially eligible for entry to the country’s Pension Protection Fund fell £13bn last month to £202.5bn, a funding ratio of 122.8%.

The transaction releases capital resources that Monument will redirect to its core strategy of consolidation in European life insurance markets.

£280m deal secures the benefits of approximately 2,800 members.