Textiles company AW Hainsworth has secured a buyout for its defined benefit pension scheme in a deal worth £2.3m.
Aviva insured the scheme, with deal management lead Jamie Cole saying it emphasised the importance of smaller funds being prepared for buyouts.
"We're pleased to have helped a company with such rich heritage secure the long-term benefits for scheme members," Cole said. "We've worked closely with the advisers to deliver this transaction. Their focus on running an efficient process has helped secure this buyout, demonstrating the market is open for well-prepared small schemes."
K3 Advisory, which advised the company on the transaction, said it demonstrated the strength of the bulk annuity market for small schemes.
Adam Davis, managing director at K3, said: "The buyout market for small schemes is growing exponentially and K3's unique approach is now helping such schemes stand out to insurers, helping secure them deals that otherwise may not be available to them.
"As a family backed business ourselves it's especially pleasing to help AW Hainsworth, an iconic, family-owned business which is 235 years old to secure benefits for their members."
According to Pudsey-headquartered AW Hainsworth's latest accounts, covering the 12 months to 31 December 2018, the scheme was nearly 111% funded.
The buyout was the second time K3 had worked with H&C Consulting Actuaries on a bulk annuity deal. Gary Hatch, partner at H&C, said the two companies had previously secured a £9m buy-in for the Carter & Parker pension scheme, with Canada Life as the insurer.
"We look forward to continuing this level of success for more clients in the future," Hatch said.
In October last year, Aon warned that the proliferation of megadeals in the bulk annuity market was posing a problem for small schemes vying for insurer attention.
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