Specialist insurer and enhanced annuity provider Partnership has inked a £30m deal to take on the liability of an unnamed manufacturing company’s defined benefit pension scheme.
Partnership said the move provides the scheme’s 400 pensioner members with the “reassurance of a retirement income guaranteed by a large insurer who meets the rigorous capital requirements of the Prudential Regulation Authority, and operates a financially robust business model”.
The announcement follows today’s (26 March) news that both Prudential and Legal & General are looking to increase their bulk annuities business in the wake of changes announced at this year’s Budget.
Partnership claims the move will give the scheme’s 400-strong membership reassurance of a retirement income which is guaranteed by the company which meets the capital requirements set out by the Prudential Regulation Authority.
Partnership was one of several companies to suffer dramatic drops in share price on Budget day, closing 55 per cent down after Mr Osborne announced sweeping changes to the way savers will take an income in retirement.
Andy Morley, head of enhanced bulk annuity sales at Partnership, said: “By working closely with the various interested parties, we were ideally positioned to move the transaction to completion in a comparatively short space of time.
“This further demonstrates that if the de-risking process is carefully managed it need not be overly time consuming nor hugely complex.”
