Today (14 June) Scottish Widows has announced it has secured a £630m pensioner buy-in with the ICI Pension Fund.
According to Scottish Widows, this is the insurer’s largest external bulk annuity transaction to date.
The buy-in covers more than 4,000 of the fund’s pensioner members and follows several buy-ins completed by the fund since March 2014.
Additionally, it sees Scottish Widows’ added to the trustee’s insurer panel to be considered for further bulk annuity transactions as it continues its de-risking strategy.
In November 2015, Scottish Widows announced its first external bulk annuity transaction, with the Wiggins Teape Pension Scheme.
Emma Watkins, director of bulk annuities at Scottish Widows, said: “We have worked closely with the trustee and their advisers to develop a bespoke solution over a number of months and this transaction demonstrates Scottish Widows’ ability to provide innovative de-risking solutions to large pension schemes.”
Jeff Sayers, managing director of bulk annuities and investment strategy at Scottish Widows, said: “We have now completed four pensioner buy-in arrangements, ranging from £50m to £630m, with a total of more than £1.25 billion.”
Mike Pendergast, an independent financial adviser with Cheshire-based Zen Financial Services, said: “We don’t have much to do with corporate schemes but Scottish Widows are used a lot by us and have been an excellent provider offering excellent products and solutions.
“Corporate schemes need to de-risk and it it good to see Scottish Widows offering this kind of option to schemes who wish to do this.”