Aviva reveals major annuity deal

Aviva said on Oct. 17 that it has completed a £600 million bulk annuity deal for the pension plan of learning company The Pearson.

This is Aviva's largest bulk purchase annuity deal to date, the company said.

The pensioner buy-in transaction covers the liabilities of around 2,400 members and builds on the existing relationship that Aviva has with The Pearson Pension Plan and its sponsoring employer, according to the statement. Aviva provides corporate pensions, group protection and health insurance to Pearson.

Aviva has identified bulk annuities as a significant growth opportunity for its UK and Irish business and wants to grow its bulk capabilities in both markets by leveraging its investment capabilities and balance sheet strength.

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.

Aviva UK insurance CEO Andy Briggs, said: “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.”

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