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Aviva and L&G complete GBP600m UK bulk annuity deal

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Aviva and Legal & General (L&G) have completed a GBP600 million bulk annuity deal with The Pearson Pension Plan.

The pensioner buy-in transaction covers the liabilities of around 2,400 members. Aviva already provides corporate pensions, group protection and health insurance for the pension plan’s sponsoring employer, Pearson plc..   
 
Members of The Pearson Pension Plan will see no change in the amount of their benefits or the way in which they are paid as a result of the transaction. The competitive bidding process to select an insurer and negotiate terms was led by LCP on behalf of the Plan’s Trustee. 
 
Aviva has identified bulk annuities as a significant growth opportunity for its UK and Irish business and is well placed to grow its bulk capabilities in both markets due to its investment capabilities and strong balance sheet. During 2017 Aviva has expanded its bulk annuity team adding over thirty new members of staff, as it competes for larger bulk annuity transactions. Aviva recently appointed Tom Ground, who previously led Legal & General’s bulk annuity business, as Managing Director of Defined Benefit Solutions. 
 
Andy Briggs (pictured), Chief Executive Officer of Aviva UK Insurance, says: “We’re delighted that the Trustee for The Pearson Pension Plan has chosen us to insure the pension benefits of its Plan members. This deal not only demonstrates our significantly increased ambitions in the bulk annuity market but also Aviva’s unique capabilities in being able to meet a broad range of needs for our clients, whether it’s pensions, general insurance, health, protection or asset management. This is helping us to build deeper relationships with our clients, customers and partners – and this latest deal is a great example of this.
 
“We’re continuing to see very strong demand for bulk annuity deals as more and more trustees look to find the right solution to manage their defined benefit pension schemes. With the recent expansion of our bulk annuity team, we’re in great shape to push ahead for further growth.”

Chris DeMarco, Managing Director of UK PRT at Legal & General, says: “The Pearson Pension Plan is a long standing client of Legal & General and we are delighted to have been selected as a buy-in partner for this next stage of the Plan’s de-risking journey. We look forward to continuing to build on our relationship with the Trustee and further supporting them in securing and protecting their members’ pensions.”
 
 

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