M&G has completed a £111m (€134m) bulk purchase annuity (BPA) transaction with the pension fund of an unnamed UK-based asset manager, securing the pension scheme benefits of 466 pensioners and deferred members.
The insurer executed and completed the transaction in a ‘compressed timeline’, with strong collaboration from the trustees, sponsor and all parties ensuring that members’ long-term security was central to the process.
The trustees, which included Independent Governance Group (IGG) as a professional trustee, were advised on the transaction by Isio as risk settlement adviser and investment consultant, Hymans as scheme actuary, Broadstone as administrator, and CMS as legal adviser.
Herbert Smith Freehills provided legal advice to the plan sponsor and Hogan Lovells provided legal advice to M&G.
Since re-entering the bulk annuity market in September 2023, M&G has written almost £1.5bn of new business, including the first-of-its-kind value share BPA transaction in November 2024.
Kerrigan Procter, managing director of corporate risk solutions at M&G, said: “This deal is possible thanks to the strong alignment of interest between the sponsoring company, the trustees and M&G, while continuing to place members’ security at the heart of the transaction.”
Procter said the transaction represents “yet another important step” in the delivery of M&G’s strategic objectives and showcases the team’s ability to work effectively and efficiently with clients to meet their de-risking goals and deliver sustainable growth.
Procter added that 2025 is expected to be yet another strong year for BPA transactions, as market conditions continue to prompt many schemes to seek solutions to manage their liabilities and secure their members’ benefits.
“We will continue to leverage the strength of our unique business model and deep expertise in private markets to develop de-risking solutions that meet the evolving needs of our clients,” he said.
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