Insurance giant Aviva has completed a £1.7bn pensioner buy-in with the National Grid Electricity Group of the Electricity Supply Pension Scheme.
The transaction, which was completed in October, included transitioning the group’s existing longevity swap with Zurich Assurance Ltd to Aviva. It will insure the benefits for 5,800 pensioner members of the Group.
Aon acted as the sole transaction adviser, covering actuarial, investment and broking aspects. Legal advice to the Group Trustee was provided by DLA Piper UK LLP, while the Scheme Trustee was advised by Mayer Brown International LLP.
Sean Rooney, senior deal manager at Aviva, said: “Our team worked closely with the Trustees and their advisers to support them with this important step to provide long-term security for their pensioner members.
“The transaction included the transition of the Group’s longevity swap, and throughout the process all parties have been flexible and focused on delivering a successful outcome. We’re especially proud that we can secure benefits for yet another signatory scheme of AFS’s Sustainability Principles Charter, reinforcing our commitment to this important initiative.”
Stephen Yandle, chair of the Group Trustee Board said: “The Group Trustee is pleased to have been able to take the next important step on our de-risking journey. The transaction is great news for members in the Group, adding further protection to their benefits, and on terms that are fully aligned with our strategic objectives.”
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