Declan Keohane, Partner and Head of Risk Transfer at First Actuarial, says: “The Trustees were keen to help the employer de-risk its balance sheet, but were worried that a buy-in would involve a substantial cash injection.”
First Actuarial was already providing actuarial, investment and administration services, and the Trustees asked the firm’s risk transfer team for guidance. We took the Trustees through the options available. And with their agreement, we approached the market for potential insurers in August 2024. We received two quotations which we discussed with the Trustees.”
Aviva were highly responsive throughout, and provided an attractive proposition, which the Trustees were happy to accept. Meanwhile, First Actuarial, Osborne Clarke and Aviva were moving quickly, and had already completed vital background work – reviewing insurer terms and conditions and carrying out know your customer and anti-laundering checks. As a result, the Scheme transacted the buy-in only a few weeks after First Actuarial had originally approached the market.
Declan says: “Even with a slight delay towards the end – because the sponsor needed additional information – the buy-in was completed by early September 2024. The Trustees’ original concerns around affordability proved unfounded – there was no need for a cash injection to meet the transaction price. It was a good result for everyone.”
Lee Colgate, Legal Director at Osborne Clarke says: “"We know that early preparation is the key to a successful risk transfer deal and we worked closely with First Actuarial to ensure that the scheme was in the best position to transact. First Actuarial's project management and communication with all stakeholders played a large part in making this a smooth and efficient process. We are pleased to have helped the Trustees to secure the scheme's liabilities with Aviva."
Declan concludes: “We’ve worked with Osborne Clarke on a number of risk transfer deals, and we’ve got a good working relationship with them. They kept everything moving throughout the process with open lines of communication. Aviva were equally responsive – with particularly effective query-handling around the premium payment – and we appreciated their pragmatic approach.”
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