Aviva today announced it has completed a 600 million bulk annuity deal with The Pearson Pension Plan. It's a pensioner buy-in transaction which covers the liabilities of around 2,400 members and builds on the important existing relationship that Aviva has with The Pearson Pension Plan and its sponsoring employer, Pearson plc, for which it provides corporate pensions, group protection and health insurance.
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, Chief Executive Officer of Aviva UK Insurance, said: "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."
Aviva Press Office | Katy Hurren | 07800 692548 | [email protected] | @Katy_Hurren
Aviva Press Office | Peter Webb | 07977 918564 | [email protected]
Notes to editors:
About Pearson PLC - Pearson is the world's learning company, with expertise in educational courseware and assessment, and a range of teaching and learning services powered by technology. Pearson's mission is to help people make progress through access to better learning. It believes that learning opens up opportunities, creating fulfilling careers and better lives. For more, visit www.pearson.com and follow @Pearson on Twitter.
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