Scottish Widows has announced its first external bulk annuity transaction, with the Wiggins Teape Pension Scheme.
Designed to minimise the risk of execution while accommodating the pension scheme’s disinvestment timetable, the first external bulk annuity transaction will cover around two thirds of the pension scheme’s liabilities in respect of 4000 individuals.
Jeff Sayers, managing director of bulk annuities and investment strategy at Scottish Widows, said: “I am delighted to announce Scottish Widows’ entrance into the bulk annuity market.
“The execution of this £400m buy-in demonstrates the strength of our offering to help trustees and scheme sponsors achieve their de-risking aims.”
It was confirmed earlier this year that Scottish Widows intended to participate in the growing defined benefit pension de-risking market.
Half year results released by Lloyds Banking Group announced a £2386m transaction with the Scottish Widows With Profits fund.
According to Emma Watkins, the director of bulk annuities at Scottish Widows, the group worked closely with the trustees and their advisers to meet the scheme’s needs.
