Aviva today announces it has completed a £142 million bulk purchase annuity buy-in transaction with the TI Group Pension Scheme, whose sponsoring employer is Smiths Group, a leading industrial technology company.
Aviva will insure the defined benefit pension liabilities of 1,224 pensioner members, removing the investment and longevity risk of these members from the Scheme. Members will see no change in the amount of their benefits or the way in which they are paid as a result of the transaction.
The process to select an insurer and negotiate terms was led by Aon.
Jamie Cole, Head of Bulk Purchase Annuity Origination at Aviva, said: “We are delighted to have been chosen to deliver this transaction which further adds to the strong backing for members of the TI Group Pension Scheme. Throughout the process, all parties have worked closely to deliver a smooth transaction and help the trustees achieve their objectives.”
Chris Surch, Chair of the Trustee of the TI Group Pension Scheme, said: “This is our sixth annuity tranche, continuing a well-established de-risking strategy for the Scheme. I am pleased that this was swiftly concluded when the opportunity arose, thanks to the dedication of our trustees, Smiths Group, our advisers and Aviva – all working as efficiently remotely as they had been when office based.”
Dominic Grimley, Risk Settlement adviser at Aon, said: “This transaction continues a trend of well-timed transactions for the Group, and was made possible by nimble decision-making from the Trustee and Smiths Group, capturing the market’s interest and de-risking without any funding cost”
Notes to editors:
- For information on how Aviva is helping our people, customers and communities impacted by COVID-19 visit: www.aviva.com/covid-19-our-response/
- Aviva is a leading international savings, retirement and insurance business. We exist to be with people when it really matters, throughout their lives – to help them make the most of life. We have been taking care of people for more than 320 years, in line with our purpose of being ‘with you today, for a better tomorrow’.
- Our vision is to earn our customers’ trust as the best place to save for the future, navigate retirement and insure what matters most to them. In 2019, we paid £33.2 billion in claims and benefits on behalf of our 33.4 million customers.
- We will focus on the UK, Ireland and Canada where we have leading market positions and significant potential. We will invest for growth in these markets. Our International businesses in Europe and Asia will be managed for long-term shareholder value. We will also transform our performance and improve our efficiency. Our transformation will be underpinned by managing our balance sheet prudently, reducing debt and increasing our financial resilience.
- Total group assets under management at Aviva group are £522 billion and our Solvency II capital surplus is £12.0 billion (HY20). Our shares are listed on the London Stock Exchange and we are a member of the FTSE 100 index.
- For more details on what we do, our business and how we help our customers, visit www.aviva.com/about-us
- The Aviva newsroom at www.aviva.com/newsroom includes links to our image library, research reports and our news release archive. Sign up to get the latest news from Aviva by email.
- You can follow us on Twitter: www.twitter.com/avivaplc/
- You can follow us on LinkedIn: www.linkedin.com/company/aviva-plc
- For the latest corporate films from around our business, subscribe to our YouTube channel: www.youtube.com/user/aviva
- We have a Globelynx system for broadcast interviews. Please contact the Press Officer noted above if you would like to make a booking.