Avon Cosmetics has completed a £235m bulk purchase annuity buy-in with M&G via its subsidiary, the Prudential Assurance Company Limited. The deal secures the pension benefits of over 3,000 members of the Avon Cosmetics Pension Plan.
“The Trustees are delighted to have partnered with M&G to complete this transaction. This buy-in helps to provide greater certainty to members about the security of their benefits and represents a pivotal moment in the Plan’s de-risking journey. My thanks to everyone involved for a great team effort in making this happen,” said Michelle Parczuk, Chair of Trustees and Chief People Officer at Avon.
“This transaction marks an important step in securing the future benefits of over 3,000 Plan members. It highlights our ability to deliver tailored solutions for complex schemes and reinforces our focus on providing certainty and confidence for trustees and members alike,” said Rosie Fantom, Head of Bulk Annuity Origination & Execution at M&G.
The trustees were advised on the transaction by WTW as risk transfer adviser and scheme actuary, CMS as legal advisers, and SEI as investment adviser.
“It was a pleasure to work with the Trustees, Avon, M&G and the wider advisory teams to deliver the transaction objectives. In particular, the Trustees were focused on ensuring the buy-in achieved an optimal outcome for members, including the preservation of all member options and coverage of complex Plan benefits. We’re seeing strong market competition delivering attractive pricing and pushing insurers to continually improve member experience,” said Gemma Millington, Senior Director at WTW.