The Haag-Streit UK Scheme has completed a £18m full buy-in with Aviva to secure the benefits of all 196 members of the scheme.
The bulk annuity transaction has secured the benefits of 135 pensioners and 61 deferred members and was completed in mid-October after the scheme approached the insurance market in July. The transaction was finalised using Aviva's streamlined quotation service and was made possible after the sponsoring employer provided a considerable contribution.
The scheme will now proceed to full buyout and wind-up.
Broadstone provided annuity broking alongside actuarial, investment consultancy and administrative services to the scheme. Legal advice was provided by Ashurst.
Trustee chair David Margetts said: "The sponsor had been keen to secure benefits and remove the scheme from their balance sheet for a while - but only if the contribution required was reasonable. When funds were on the table, it was vital for the trustee to move quickly and ensure the scheme was attractive to the insurance market."
"It is great news that we have secured benefits for our members at an affordable cost for the sponsor. It was a pleasure to work with Broadstone, Ashurst and Aviva to complete this transaction. A good team effort drove the transaction forward at a cracking pace despite strong demand in the bulk annuity market and I look forward to working through the final steps to wind up the scheme."
Aviva deal manager Paul Donnelly commented: "We're delighted to have been chosen to secure benefits for scheme members. All parties worked closely to complete the transaction in a short time frame, using Aviva's new streamlined quotation service. Careful preparation by the trustees and their advisers supported the swift transaction."
Broadstone senior actuarial director and scheme actuary John Broome Saunders added: "This transaction was initially discussed around a year ago and the intensive work completed by Broadstone and other advisors this year allowed us to present a buyout-ready scheme to insurers. We're delighted that this work culminated in a price from Aviva that was within the sponsor's budget and allowed the funding contribution to be made to complete the transaction."
The deal with Haag-Streit marks the latest bulk annuity transaction Aviva has completed this year and follows on from its £80m buy-in with Rotork, a £30m buyout with British Red Cross, a £600,000 buyout with the Singer & James scheme, the £120m buy-in with the National Transcommunication Limited 1999 scheme, its £900m buy-in with Thomas Cook, a £34m buy-in with Chapelthorpe, a £850m buy-in with Arcadia Group and a £400m deal with the Interserve Pension Scheme.
