NSK, a global manufacturer of bearings, automotive and precision machinery products, has completed a £309m bulk purchase annuity transaction for around 3,700 pensioner and deferred members of the NSK Pension Scheme with M&G. The insuring entity is The Prudential Assurance Company Limited, M&G’s wholly-owned subsidiary offering life and pensions solutions.
The deal is the third buy-in transaction completed by M&G since re-entering the bulk annuity market in September 2023, with total new business written by the firm now at approximately £930m.
“This transaction sees us take on the future pension obligations of the 3,700 pensioner and deferred members of NSK’s UK pension scheme, giving them the peace of mind that their pension is in the hands of a 175-year-old institution. It was made possible due to the strong collaboration and commitment between all parties involved and we are very pleased to have worked with the both the sponsor and trustee to achieve this significant de-risking milestone,” said Clive Bolton, Life Insurance CEO at M&G.
“Since we announced our re-entry into this market last year, we have selectively participated in deals, having now written close to almost £1 billion of business. We are committed to continuing to leverage our differentiated business model to help our clients achieve their goals and deliver sustainable growth.”
“The company is delighted to have supported the trustee in securing this buy-in policy. It shows our commitment to the scheme and members’ long-term security. This transaction is a major milestone in our collaborative approach with the trustee to reduce risk over the years. We would like to acknowledge the hard work of M&G, the trustee and all the advisers for their effective teamwork in completing the transaction,” said Mark Trivett, CFO at NSK Europe.
“Insuring our members’ benefits has been a key aim of the trustee and company, providing long-term security. To achieve this key aim within the required timescales was challenging but the Trustee were expertly supported thanks to Aon and CMS’s deep knowledge of the insurance market, allied with a collaborative approach across all parties. The trustee is delighted with the outcome,” added Steve Metcalfe, Chair of NSK Pension Trustee Limited.
Mercer acted as lead advisers for NSK Europe Limited on this transaction, with legal advice to the Sponsor provided by Shoosmiths. The trustees were advised by Aon and CMS. Hogan Lovells provided legal advice to M&G.
