Aviva has finalized a £1.7 bn pensioner buy-in with the National Grid Electricity Group of the Electricity Supply Pension Scheme.
Aviva stated that the deal, completed in October 2024, involved transferring the Group’s existing longevity swap with Zurich Assurance Ltd. The agreement provides insurance for the benefits of 5,800 pensioner members of the Group.
Our team worked closely with the Trustees and their advisers to support them with this important step to provide long-term security for their pensioner members. The transaction included the transition of the Group’s longevity swap, and throughout the process all parties have been flexible and focused on delivering a successful outcome
Sean Rooney, Senior Deal Manager at Aviva
Sean Rooney stating, “We’re especially proud that we can secure benefits for yet another signatory scheme of AFS’s Sustainability Principles Charter, reinforcing our commitment to this important initiative.”
Aon acted as the sole transaction adviser, overseeing actuarial, investment, and broking aspects. Legal advice to the Group Trustee was provided by DLA Piper UK, while the Scheme Trustee received counsel from Mayer Brown International.
The transaction is great news for members in the Group, adding further protection to their benefits, and on terms that are fully aligned with our strategic objectives
Stephen Yandle, Chair of the Group Trustee Board
“It was a pleasure working in partnership with Aon and DLA Piper as part of this transaction, and we look forward to working closely with Aviva in the future”, Stephen Yandle stated.
Tom Scott, Partner at Aon, commented, “We were pleased to support the Group Trustee with the successful execution of this transaction which marks a further step in implementing the Group’s risk settlement strategy. Entering into a longevity swap in 2018 allowed the Group to hedge longevity risk until it was in a position to move to buy-in. Having flexibility, via a future-proofed longevity swap contract with Zurich to transition to another insurer, enabled us to achieve an excellent outcome for the Group and its members.”
