An unnamed pension scheme, sponsored by a UK insurance company, has completed a £150m bulk purchase annuity transaction with M&G. The deal was completed in June and secures the benefits of approximately 1,200 scheme members.
The transaction used M&G’s BPA Plus solution, which incorporates M&G’s £132bn With-Profits Fund.
“We are delighted to have partnered with the trustee to deliver this £150m transaction, securing the benefits of nearly 1,200 members. This transaction demonstrates the strength of M&G’s BPA Plus proposition, combining the security of a bulk annuity with the opportunity for future upside through the potential for annual cash bonuses. We look forward to continuing to work with the trustee as they progress towards buy-out,” said Rosie Fantom, Head of Bulk Purchase Annuity Origination & Execution at M&G.
WTW acted as lead transactions adviser and scheme actuary to the trustee, with Clyde & Co providing legal advice and Mercer acting as the trustee’s investment advisers.
“The purchase of this buy-in policy follows an extensive buy-in readiness project undertaken by the Trustee, led by WTW and supported by the Trustee’s other advisers. The outcome achieved far exceeds expectations at the start of this journey, with M&G’s innovative BPA plus proposition and other flexibility around money purchase arrangements offering the potential for very positive outcomes for members,” said Ben Todd, Senior Director at WTW.
