British Bankers' Association scheme completes £95m full buy-in deal with Aviva

Jonathan Stapleton
clock • 2 min read

The British Bankers’ Association Pension Scheme (BBA) has completed a £95m bulk purchase annuity transaction with Aviva.

The deal will see Aviva insure the defined benefit pension liabilities of all 213 members, removing the investment and longevity risk of these members from the scheme.

The process to select an insurer and negotiate terms was led by Lane Clark & Peacock (LCP) on behalf of LawDeb Pension Trustees as sole corporate trustee to the scheme. Gowling WLG provided legal advice on the transaction and the scheme was also advised by Barnett Waddingham and Womble Bond Dickinson.

BBA chief executive Henrietta Royle said: "The long-term security of our pension scheme is extremely important, especially during current times of uncertainty. This successful transaction with Aviva provides that security and is great news for the organisation and our scheme members."

LawDeb Pension Trustees trustee director Sean Burnard, the sole corporate trustee of the scheme, added: "We firmly believe this full buy-in represents excellent value in context of a more secure future for BBA's pension scheme members. When you consider the challenging times we have found ourselves in, unprecedented in fact, we are very pleased to have been able to successfully transact accordingly. This is testament to extensive stakeholder management and a real lesson in positive collaboration between all the parties involved."

Aviva head of bulk purchase annuity origination Jamie Cole said: "We've worked closely with LCP to deliver this transaction using their streamlined process.  This once again demonstrates that smaller schemes can access attractive pricing when they are well prepared and supported by an efficient process, even against the backdrop of recent market volatility."

LCP partner Sam Jenkins agreed: "The British Bankers' Association and scheme navigated unprecedented market volatility to reach a successful transaction that provides long-term certainty for their members. Aviva worked closely with us and the scheme to make the transaction a success.  LCP's streamlined process gave BBA and the scheme certainty on costs and timings for the full buy-in and better access to the insurance market."

According to data compiled by PP, around £7.7bn of bulk annuities have so far been announced this year, with Aviva securing the benefits for around £2.4bn of UK scheme members.

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