Aviva, the UK insurer and provider of wealth and retirement services, has completed a £300 million bulk purchase annuity (BPA) buy-in with the Trustee of the Elementis Group Pension Scheme, covering the defined benefit liabilities of around 4,500 members.
The insurer said the transaction, which completed in May 2026, also enables a subset of members to use their additional voluntary contributions (AVCs) as a primary source of tax-free cash through Aviva’s integrated DB&C Master Trust solution.
The structure of the transaction included a price lock, allowing the Trustee to reduce its credit fund holdings before moving assets into the premium payment portfolio. The insurer said this helped limit mismatch risk while providing pricing certainty during the transaction.
Aon acted as lead adviser to the Trustee on the deal, while Squire Patton Boggs (UK) LLP provided legal advice to the Trustee. Aviva said its legal advice was provided by its in-house team.
Sean Rooney, Senior BPA Deal Manager at Aviva, commented: “Completing this transaction with the Elementis Group Pension Scheme is a strong example of what can be achieved through close collaboration between parties and clear objectives.
“Aviva has significant post-transaction expertise, having completed more than 650 data cleansing exercises as part of the transition to buyout or long-term buy-in. As part of this transaction, the Trustee has the option to draw on Aviva’s expertise, alongside our specialist partners, to support completion of their data cleansing and verification activities.
“This provides certainty to the Scheme and its sponsor that, regardless of any scheme administration constraints, they can always rely on Aviva to ensure their preferred timescales for data cleanse are met, providing greater flexibility over the timing of any potential future buyout.”
Aviva said the Trustee will have the option to use the insurer’s post-transaction support services, including assistance with data cleansing and verification through its specialist partners. According to the insurer, this is intended to help maintain progress towards any future buyout regardless of scheme administration constraints.
Brian Taylorson, Chairman of the Trustee Board of the Elementis Group Pension Scheme, added: “We are delighted in our selection of Aviva as our insurance partner for securing fully the defined benefits of our members and their dependents. Aviva has a strong brand and rich heritage similar to Elementis whose own history goes back to 1844. This deal would not have been possible without the full support of our sponsor, Elementis plc, which was and remains strongly collaborative throughout this process.”
Wai Wong, Secretary of the Elementis Group Pension Scheme, commented: “Even with extensive planning and preparation, we had to overcome a number of challenges in our journey but our risk transfer advisory team at Aon were excellent and methodically guided the Trustees through every step in the process, supported by all of the Scheme’s key advisers and Aptia as Scheme Administrator. Our focus now turns to the data validation phase and a comprehensive plan and strong project management will ensure we deliver for all our stakeholders.”
Leah Evans, Partner at Aon, said: “The unusual liability profile of the Scheme required in-depth considerations of scheme experience and cashflow profiles in order to complete a successful transaction. We worked closely with the Trustee and Aviva to develop solutions both for the initial transaction and to support the Trustees in the next stage of their journey. The Trustees’ strong governance structure and engagement throughout the project, as well as the support by the sponsor, allowed for efficient decision making and was key to achieving a good outcome for the Scheme and its members.”
