Investment - Articles - Aon Hewitt advise KPSCPS on bulk annuity with Partnership


Aon Hewitt, the global talent, retirement and health solutions business of Aon plc (NYSE:AON), has announced that it has advised the Kuwait Petroleum Services Company Pension Scheme on a bulk annuity deal with Partnership. It becomes the largest full scheme medically underwritten bulk annuity transaction yet completed in the UK.

 To collect the health and well-being information from members, the trustees used Aon Hewitt's AHEAD platform which has been developed to give insurers the underwriting information they need in order to provide their most competitive quotation.
  
 John Baines, principal consultant at Aon Hewitt said:
 “This is the largest full scheme medically underwritten bulk annuity yet completed in the UK. Being able to secure all benefits in a scheme of this size is yet another milestone in this rapidly expanding market. We estimate that pricing was around 10% cheaper than a traditional bulk annuity would have cost.
  
 “By using AHEAD we gained a 90% member response – a figure we have seen on all our AHEAD transactions so far – which gave the trustees access to a significantly better price than would otherwise have been available.”
  
 Graham Smith, Chair of Trustees of the Kuwait Petroleum Services Company Pension Scheme, said:
 "We have been working with our advisers with the aim of securing long term benefits for our scheme members. The culmination of this deal means that we can now provide additional security for these benefits. Aon Hewitt was able to offer us an integrated service throughout the process, and the deal they negotiated with Partnership offered great value for both members and the scheme sponsor."
  
 Costas Yiasoumi, Director of Defined Benefit Solutions at Partnership, said:
 “Over time we expect that an increasing proportion of bulk annuity transactions under £100 million will be medically underwritten. We’re pleased to have worked with Aon Hewitt and the trustees to fully secure the member benefits.
  
 “Our analysis shows that 93% of medically underwritten bulk annuity processes over 2013 and 2014 ended with successful insurer selection, an enviable achievement for the bulk annuity market*. The evidence is that when trustees have chosen the medically underwritten route the resulting pricing has met or beaten expectations.” 

Back to Index


Similar News to this Story

Targeted Support major step towards addressing support gap
Targeted Support is poised to play a pivotal role for potentially millions of non-advised individuals. Non-advised could be supported with at retireme
FCA proposals for millions to navigate their financial lives
Millions more people could get help navigating their financial lives with support on pensions and investments, under proposals announced today by the
Comments on FCA proposals on navigating financial lives
Aviva, Just Group, Standard Life, Scottish Widows and the ABI comment on FCA proposals on navigating financial lives

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.