Aviva has completed a £180 million bulk annuity buy‑in for the Aston Martin Lagonda Pension Scheme, covering about 540 active retirees and 1,050 deferred members.
Deal structure and market response
The transaction was advised by LCP, with partner Sam Jenkins noting the scheme moved quickly to secure “a hugely attractive opportunity”. He added that a “tailored market approach” and coordinated effort among trustees, the sponsor and advisers enabled swift action once the chance emerged.
Aviva’s bulk annuity deal manager Kerry Support said the deal “highlights the value of how a scheme’s approach to market is structured”.
Other recent bulk annuity activity includes M&G’s £150 million “BPA Plus” transaction for a scheme sponsored by an unnamed insurer. That deal features a risk‑sharing component linked to M&G’s £132 billion With‑Profits Fund, potentially allowing bonuses if investment performance permits. WTW led the advisory work, while Clyde & Co provided legal counsel.
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Isio’s micro‑scheme milestone
Consultancy group Isio announced it has placed 20 sub‑£15 million schemes onto its PenUltimate Micro insurance service, targeting pension arrangements with fewer than 100 members. The firm expects to double that number within the next year.
Two of the micro schemes have already completed buy‑ins in the past twelve months: the Pension and Life Assurance Plan of the Godolphin Company Limited and The Graham Asset Management Pension and Life Assurance Scheme.
Isio reports that six of the ten insurers active in the bulk annuity market are interested in schemes processed through its PenUltimate Micro platform, and it anticipates transactions with four different insurers before year‑end.
Christian Costi, Insurance Director at Isio, explained that smaller schemes often face the same regulatory and governance challenges as larger ones but have fewer resources to manage them. He said, “More insurers are engaging with smaller schemes and developing dedicated solutions, creating greater choice for trustees and making insurance a realistic option for more schemes than ever before.”
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Isio also introduced PenUltimate Micro+, a bundle of administration, actuarial, investment and governance services designed to help schemes that need more time before entering the insurance market.
Post‑transaction considerations
Cartwright Pension Trusts cautions trustees not to view a bulk annuity buy‑in as the final step. Consultant Rob Chandler emphasizes that the “transaction day should be viewed as a milestone rather than a finish line,” noting that subsequent work is essential for achieving long‑term objectives.
Chandler points to data quality as a common challenge after a buy‑in, with detailed reviews often revealing errors, missing information, or inconsistencies that must be resolved before a buy‑out can proceed.
The consultancy stresses that successful outcomes depend on robust preparation, governance and collaboration during the post‑buy‑in phase. Whether a scheme moves toward a buy‑out or pursues another strategy, the ongoing process is as important as the initial deal.
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