Aviva completes £1.3bn buy-in with RAC (2003) Pension Scheme

• The pension scheme full buy-in insures £1.3bn of liabilities and secures benefits for c19,000 members.

• The transaction includes the novation of an existing longevity swap and a transfer of illiquid assets.

Aviva has today announced the completion of a £1.3 billion bulk purchase annuity full buy-in with The RAC (2003) Pension Scheme. The transaction - completed in August 2024 - secures the benefits for all the scheme’s c19,000 members.

The deal highlights Aviva’s capability to support clients with complex schemes who are focused on securing member benefits. Features of the deal included a novation of the scheme’s existing longevity swap and the transfer of illiquid assets. 

The scheme trustees were advised by Hymans Robertson and legal advice was provided by Linklaters LLP.

Andy Morley, Senior Deal Manager at Aviva, said: “At Aviva, we pride ourselves on reaching successful outcomes for schemes, so we’re really pleased to have secured benefits for RAC scheme members. This transaction was complex and required the expertise and commitment of all parties.”

Brian Bussell, Chair of Aviva Staff Pension Trustee Ltd, said: “We are delighted to have completed this complex transaction covering all the benefits due to members of the RAC (2003) Pension Scheme, providing them with the additional security of a full scheme buy-in. The Trustee is grateful for the hard work of its advisors and in-house team in getting this transaction over the line.”

Iain Pearce, Partner at Hymans Robertson, added: “We’re delighted to have advised on this transaction to secure benefits for members. Transactions of this size inevitably have a number of complexities and we’re delighted to have applied our longevity swap conversion and £1bn+ transaction expertise to work closely with all parties to smoothly reach this full scheme buy-in.”