The Rolls-Royce & Bentley Pension Fund, which is sponsored by Bentley Motors Limited, has concluded an £880m (€1.04bn) bulk purchase annuity (BPA) transaction with Standard Life, part of Phoenix Group.

The deal, which completed this month, is a full scheme buy-in transaction covering around 6,000 members of the scheme. It included novation of the scheme’s existing longevity swap with Standard Life, originally executed in 2013 with Abbey Life (now part of Standard Life).

Kate Leigh, trustee director at Vidett and trustee of the scheme, said the transaction “represents a significant step in our ongoing de-risking strategy, ensuring long-term security for our members”.

She said: “Standard Life’s expertise was instrumental in navigating this stage of our journey and achieving our objectives. We look forward to continuing our work together to safeguard our members’ futures.”

Rolls Royce car road

The Rolls-Royce & Bentley Pension Fund buy-in deal included novation of the scheme’s existing longevity swap with Standard Life

Kieran Mistry, director of defined benefit solutions at Standard Life, said the risk-transfer market “remains busy” and is showing “no signs of slowing down following a record-breaking 2023, with 2024 volumes expected to exceed the £50bn mark”.

“Insurance remains the primary de-risking solution for many trustees and sponsors, with preparation and early engagement vital to successfully navigating the busy market,” he said.

“We are continuing to see the benefit of working in partnership to achieve schemes’ unique objectives.”

Improved funding positions mean more defined benefit schemes are considering run-on rather than off-loading their liabilities, however. 

Isio was the lead transaction adviser to the trustee, the investment adviser was Redington, and legal advice was provided by Sackers. PwC and Travers Smith provided advice to the sponsor. Standard Life was advised by Eversheds Sutherland.

Other recently revealed deals involving Standard Life include a £300m deal with Unisys and a £114m deal with Vector Pension Scheme.

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