The Aviva Staff Pension Scheme has completed a £875m (€964m) buy-in with Aviva Life & Pensions UK, covering liabilities in respect of some 2,800 members.
The defined benefit liabilities of more than 27,000 of members are now insured.
The deal announced today is the scheme’s second with Aviva following a £1.7bn buy-in in 2019 and a £5bn longevity swap in 2014.
Brian Bussell, chair of the trustee of the scheme, said: “The trustee is delighted to have entered into this second buy-in with Aviva to continue to take steps to help secure the benefits due to our members.
“In addition to the existing longevity swap and buy-in, this recent buy-in helps to further reduce the amount of longevity and investment risk within the scheme.”
The scheme trustee was advised by Hymans Robertson and Linklaters.
Michael Abramson, partner at Hymans Robertson and lead adviser on the transaction, added: “Hymans Robertson is pleased to have helped the trustee take another meaningful step in its de-risking journey, with over £7bn of the scheme’s longevity risk now removed.
“In a turbulent year, this buy-in is a prime example of how pension schemes who are well prepared can move nimbly to take advantage of de-risking opportunities.”
Recent DB de-risking deals announced include a £750m buy-in duo for the Marks & Spencer Pension Scheme and a £146m buy-in for Smiths Industries.
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