Utmost Life and Pensions, the newest entrant into the bulk annuity market, is to undertake an 18-month technology “transformation” to support its future growth.
The insurance company has struck a deal with Atos to lead the transformation work, which Utmost said would “reduce business costs and encourage strategic growth”.
Atos will transfer Utmost’s IT systems to the cloud to improve stability and reduce technology infrastructure costs. The move would also aid compliance, according to the insurer.
Utmost entered the bulk annuity market last year with a £20m buy-in, and is using Mantle’s specialist defined benefit pension software.
Mark Francis, Utmost’s chief financial officer, said: “It’s vital that we have a best-in-class IT foundation to provide a reliable and responsive service to the over 290,000 policyholders that Utmost Life and Pensions protects and helps save for the long term.
“The cloud platform provides us with the scalability we require to meet our ambitious long term strategic growth goals.”
As well as two unnamed defined benefit pension scheme it insured last year, Utmost also looks after Equitable Life policyholders.
Utmost has built a team of 20 in-house staff, led by CEO Andrew Stoker, to support its bulk annuity market entry. It believes it has “a strong and credible offering to address the significant demand for pension risk transfer in the UK”.
Machinery firm hammers out buy-in with Standard Life
Standard Life has insured the Finning Pension Scheme through a £250m buy-in. The scheme is sponsored by Finning UK, a machinery dealership.
The full scheme buy-in was completed in December 2024 and covers approximately 2,170 members.
James Staveley-Wadham, principal risk settlement consultant at Aon, said: “A key outcome for the trustee board was ensuring that a strong member experience remained post buy-in. This is an area in which we are seeing ever-growing demand from schemes when considering insurance.”
Aon was the lead transaction adviser to the trustee, with investment advice from Hymans Robertson and legal advice from Gowling WLG.
L&G insures TUI scheme section
Legal & General (L&G) has completed a £370m buy-in with a section of travel agency TUI’s defined benefit pension scheme.
The buy-in was finalised in the fourth quarter of 2024 and covers members of the BAL section of the scheme, the TUI Group UK Pension Trust, which is now fully bought in after a series of deals secured since 2021.
Roughly £30m of the premium has been deferred for up to two years to allow the scheme to run-off some illiquid assets.
Mike Roberts, a partner at PAN Trustees and chair of the trustee board, said: “Securing the benefits for our members has been the aim of the trustee for many years, and we are delighted to have achieved another successful transaction.
“This is a prime example of how collaboration between all parties can get the best outcome for members of the scheme.”
Karen Gainsford, partner at Isio, added: “A transaction of this complexity has required a problem-solving mindset alongside robust analysis, as well as having a deep understanding of the key stakeholders.”
LCP was the lead transaction adviser, while Linklaters provided legal advice to the trustee board. Isio and Herbert Smith Freehills advised TUI, while Macfarlanes provided legal advice to L&G.
