The insurer says bulk annuities are a “significant growth area” for its UK business
Aviva has completed a £600m bulk annuity deal with the Pearson Pension Plan, its biggest deal to date.
The deal is a pension buy-in transaction that covers the liabilities of around 2,400 members. Aviva already provides workplace pensions, protection and health insurance for Pearson.
In a statement, Aviva says it has identified bulk annuities as a “significant growth opportunity” for its UK and Ireland business. This year it has hired more than 30 staff as it eyes large bulk annuity deals.
Aviva UK Insurance chief executive Andy Briggs says the deal shows the company’s “significantly increased ambitions” in the bulk annuity market.
Briggs says: “We’re continuing to see very strong demand for bulk annuity deals as more and more trustees look to find the right solution to manage their defined benefit pension schemes.”