The Unomedical Pension Plan has agreed to a £10m buyout of its 65 members’ liabilities with Aviva.
Sponsored by international medical products and technologies firm ConvaTec Group, the scheme completed the transaction via Aon's streamlined smaller scheme bulk annuity solution, Pathway, which used pre-negotiated legal contracts.
Lane Clark & Peacock (LCP) last week said more smaller schemes would be able to secure bulk annuity transactions through the use of streamlined products from consultancies.
Capital Cranfield acted as sole trustee to the scheme, with Aon advising the professional trustee firm.
Professional trustee Hugh Creasy said: "This is the best long-term solution for the members of the Unomedical Pension Plan, so I am very pleased that Aon's Pathway has enabled us to secure a transaction with Aviva, meeting our needs in a busy bulk annuity market - and at this most difficult of times."
Aviva head of origination for defined benefit solutions Jamie Cole added: "We are committed to supporting schemes of all sizes achieve their goals and we're delighted to have helped secure the benefits for the members of the Unomedical Pension Plan.
"The pre-negotiated contracts available through the Pathway streamed solution delivered a very efficient process, allowing all parties to work closely to reduce the time taken to complete the transaction. Having a well-managed process, which can transact quickly, is essential in volatile market conditions and it plays an important role in helping to secure attractive pricing for smaller schemes."
The deal is Aviva's fifth announced this year, following two transactions worth just under £1.4bn with the Co-operative Pension Scheme, a £95m buy-in with the British Bankers' Association Scheme, and £72m buy-ins with Castings schemes.
Aon senior consultant Dave Barratt added: "After the mega bulk annuity deals of 2019, this is both a reminder and evidence that the market is very much still open to smaller size deals in 2020 - despite all the challenges that this year is bringing."
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