Reinsurance News

Aviva completes £400m buy-in with Interserve

12th January 2023 - Author: Kassandra Jimenez-Sanchez

London-headquartered insurer, Aviva has completed a £400 million buy-in of the Interserve Pension Scheme, securing the benefits of more than 7,000 members.

AvivaThis buy-in follows a £300 million pensioner-only buy-in back in 2014 and means that Aviva has now insured the pension liabilities for all Interserve Section members, comprising 4,300 pensioners and a further 2,800 deferred members.

The total transaction included a buy-in of the remaining members of the Interserve Section accompanied by a reshaping of the existing buy-in policy.

According to the announcement, Aviva was selected following a “competitive and thorough” market process led by Lane Clark & Peacock (LCP).

The scheme trustees were independently advised throughout the process by LCP and Sackers who provided legal advice.

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The construction firm went into administration in 2019, and since then most of its operations have been sold to the likes of Mitie, a rival outsourcing group.

Jamie Cole, Head of Bulk Purchase Annuity Origination at Aviva, commented: “We’ve worked with the Scheme for more than eight years, so naturally we’re delighted to have been chosen to support them to complete their journey to eventual buy-out.

“This has been a complex transaction comprising a new buy-in, along with the restructuring of the existing buy-in. All parties have worked very closely to achieve this optimal outcome in a timely and efficient manner.”

David Trapnell, Chair of Trustees, Interserve Pension Scheme, added: “We are pleased to have agreed a new solution with Aviva which provides security and certainty to more than 7,000 Scheme members.

“In order to best protect members’ interests, it was crucial we acted to secure a long-term resolution and Aviva offered the best outcome. We would like to thank Aviva and our advisers who helped us get to this stage.”

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