Re/insurance broker Aon has advised the trustees of The Wiltshire (Bristol) Limited Retirement Benefits Scheme on a £15 million full pension scheme buy-in with Just Group, covering the pension liabilities of over 150 pensioner and deferred members.
The transaction was completed in 2022 using Pathway – Aon and Eversheds Sutherland’s solution for smaller bulk annuity transactions.
Throughout 2022, both Aon and Eversheds Sutherland advised on multiple Pathway transactions across six separate insurers, which clearly demonstrates how attractive Pathway transactions are to insurers.
For the project, the Trustees were advised by Aon, Eversheds Sutherland, and Osborne Clarke.
Moreover, the pension scheme is a legacy arrangement sponsored by Auto Trader Limited. However, no scheme members are current employees of the company.
Claire Baty, Chair of the Trustees for Wiltshire (Bristol) Limited Retirement Benefits Scheme, said: “Insuring our members’ benefits with Just Group has led to an excellent outcome for them, providing long-term security for their benefits. We were able to complete the transaction in volatile market conditions through a combination of advice from Aon and Eversheds Sutherland and the flexibility and responsiveness of all parties.”
James Ellis, Principal Associate at Eversheds Sutherland, commented: “We are really pleased to have worked with the trustees and Aon on this transaction, with our joint Pathway product achieving a great outcome for the scheme. A number of schemes are approaching fully-funded status at the moment, and this has created a highly competitive buy-in market. Schemes of all sizes are looking to secure the best deals for their members, with the pace expected to continue in 2023, and this is why having options such as Pathway have been so important for smaller schemes.”
Carly Bryan, senior consultant in Aon’s Risk Settlement Group, added: “This transaction was completed during a period of extreme volatility, but still captured favourable pricing due to the tried and tested process, and straightforward execution offered by Aon’s Pathway service – which is specifically designed for schemes of this size. This transaction shows again how smaller schemes can successfully access attractive and competitive terms if they approach the market in the right way.”
Prashant Mehta, at Just Group, said: “We are delighted to have completed the full scheme buy-in transaction for The Wiltshire (Bristol) Limited Retirement Benefits Scheme, securing members’ benefits during an extremely busy bulk annuity market in the latter half of 2022. By working closely with the trustees and their advisers Aon, Eversheds Sutherland and Osborne Clarke, we are pleased we were able to ensure the transaction completed successfully, despite very volatile markets.”
