LCP reaches £4bn secured through LCP’s Streamlined Buy-in Service following completion of a full buy-in with Aviva by the Trustee of Rotork Pension & Life Assurance Scheme
Pensions & benefits Pension risk transfer DB pensions Risk
The Trustee of the Rotork Pension and Life Assurance Scheme (“the Scheme”) has entered into a £70m buy-in transaction with Aviva covering the pension benefits for 19 current pensioners and dependants, and 322 deferred members – including those members who remain employees of Rotork.
The buy-in is the second transaction the Scheme has entered into with Aviva, following an £80m pensioner buy-in completed last year, and means the Scheme is now fully insured.
This is the 96th transaction completed using LCP’s market leading Streamlined Buy-in Service, and taking the total insured using the service to more than £4bn.
LCP was appointed to the Trustee as specialist risk transfer adviser, acting as lead adviser for the transaction using their Streamlined Buy-in Service. The Trustee was also advised by Barnett Waddingham as Scheme Actuary and Investment adviser and Gowling WLG provided legal advice.
Melanie Cusack, Zedra Governance Limited, Independent Chair of Trustee Board said: “With the support of our advisers, we were able to move quickly to capture an opportunity to secure the remaining benefits in the Scheme much sooner than we had expected. This buy-in policy further increases the security of all our members’ benefits.”
Tim Gilbert, Partner at LCP, added: “We are delighted to have helped the Trustee capture this opportunity through LCP’s Streamlined Buy-In Service. With the high demand from schemes approaching the buy-in market, insurers are continuing to focus on smaller transactions that they know will be efficient with a high likelihood of successfully transacting.
"Using LCP’s Streamlined Buy-in Service saves insurers (and schemes) significant time and costs, in particular on legal work, as market-leading contracts have been pre-negotiated with each insurer, and the exceptional track record of completing transactions attracts insurers to quote competitively.
“This is a milestone transaction taking the total insured through the LCP Streamlined Buy-in Service past £4bn. Even in a busy market we continue to see strong insurer engagement and attractive terms for well prepared schemes using this service.”
Toby Holmes, BPA Senior Deal Manager at Aviva, said: “We are extremely pleased to have worked with the Trustees and their advisers again. All parties worked efficiently to help the Scheme take the next step on their journey plan.
"This is our 8th transaction this year completed through LCP’s Streamlined Buy-in Service, and it continues to deliver well prepared schemes and efficient execution.”
