Aviva has completed a £300m bulk liability transfer with the Interserve pension fund.
Interserve is a construction and building management services firm.
Employers with legacy defined benefit pension arrangements often seek to transfer some of the longevity risk onto insurers.
Aviva bulk purchase annuities director Nick Johnson says: “Aviva has worked particularly closely with the trustee and its advisers, focusing as a team on an efficient way to complete the transaction and providing Interserve with an effective way of managing its pension scheme risk. We are increasingly seeing mid-size bulk purchase annuity transactions being dealt with in a streamlined way, similar to smaller deals.”
Interserve trustee board chairman David Trapnell adds: “This transaction represents a significant risk reduction step for the Interserve pension scheme, reducing funding volatility and providing additional protection for all our members’ benefits.”
Legal & General has also seen growth in the bulk annuity market and in March secured what is believed to be the largest bulk annuity deal in the UK market, taking on £3bn in liabilities from the ICI pension fund. The bulk annuity sales have softened the blow of falling individual annuity volumes following the Budget.