The deal is one of the biggest bulk annuity transactions announced so far this year and includes the conversion of a 2013 longevity swap contract.
The deal has insured the benefits of approximately 6,000 members of the scheme, which is sponsored by Bentley Motors.
The buy-in, which was completed earlier this month, includes the conversion of a longevity swap that the scheme executed with Abbey Life in 2013. Abbey Life is now part of Standard Life, which in turn is owned by Phoenix Group.
According to a statement from the insurer, the scheme’s trustee board and sponsor “worked collaboratively with Standard Life over an extended period to achieve the scheme’s de-risking objectives and secure a full buy-in, significantly reducing the scheme’s risks”.
Nick Johnson, partner in insurance and risk settlement at Isio, which advised on the transaction, said: “We have worked together on the de-risking journey from planning to execution, plus a stakeholder communication exercise.
“We are grateful to Standard Life for their support in crafting a tailored de-risking solution and working closely with all parties to ensure a smooth execution.”
Kate Leigh, trustee director at Vidett, the scheme’s sole corporate trustee, said: “This transaction represents a significant step in our ongoing de-risking strategy, ensuring long-term security for our members.”
Kieran Mistry, senior business development manager at Standard Life, said the bulk annuity and risk transfer markets were “showing no signs of slowing down” as volumes were on track to exceed £50bn in 2024.
“Insurance remains the primary de-risking solution for many trustees and sponsors, with preparation and early engagement vital to successfully navigating the busy market,” he said. “We are continuing to see the benefit of working in partnership to achieve schemes’ unique objectives.”
Further reading
The changing face of bulk annuities (19 February 2024)
Bulk annuity latest: £33m buy-in for recycling firm (26 June 2024)
