Hymans Robertson advises on Aviva Staff Pension Scheme £1.7bn buy-in with Aviva

The Aviva Staff Pension Scheme (the “Scheme”) has completed a £1.7 billion buy-in with Aviva Life & Pensions UK Ltd (“Aviva”) covering the Scheme’s liabilities in respect of c.5,800 members. Hymans Robertson acted as lead adviser to the Scheme.

Through the buy-in arrangement, Aviva will insure the defined benefit pension liabilities of approximately 4,300 deferred and 1,500 current pensioner members of the Scheme.

Brian Bussell, Chair of the Trustee of the Scheme, said: 

“The Trustee is delighted to have entered into this first buy-in to help secure the benefits due to our members.  Combined with the existing longevity swap, this buy-in means that the Scheme has now hedged a material amount of longevity and investment risk.

Hymans Robertson’s leadership, advice and insights proved invaluable to us in reaching this significant milestone for the Scheme.”

Michael Abramson, Partner at Hymans Robertson and lead adviser on the transaction added:

“Hymans Robertson is delighted to have helped the Trustee take this meaningful step in its de-risking journey. Despite political uncertainty and market volatility, 2019 has already proven a record year for the bulk annuity market, with total transaction volumes in excess of £36bn. Buy-ins such as these show how insurance can be a meaningful part of the de-risking strategy for even the largest pension funds.”