Investment - Articles - Scottish Widows complete 510m pensioner buy in with Aon

Scottish Widows has completed a £510m pensioner buy-in with the Aon Bain Hogg Pension Scheme Section of the Aon Retirement Plan. The Plan is sponsored by Aon UK Limited.

 This is the Plan’s fourth pensioner buy-in and the second for the Section, representing a significant further step on its long-term de-risking journey. Scottish Widows and the Trustee worked closely together to ensure the arrangement was structured to meet the Plan’s needs. This collaborative approach enabled the buy-in to be completed quickly following exclusivity. 

 The Trustee was advised by Aon and CMS and Scottish Widows was advised by Herbert Smith Freehills.

 Lara Desay, Co-Head of Origination and Structuring, Bulk Annuities at Scottish Widows, said: “We are proud to have been chosen by the Trustee and Company to help them take a material step towards de-risking the Plan and providing increased security to members. Working in partnership with the Trustee and our respective advisers was key to quickly developing and executing a clear timetable through a volatile period and we look forward to becoming a long-term partner.”

 Andy Kieran, Chair of Trustees, Aon Retirement Plan, said: “The Trustee has been working with our advisers over a number of years to manage risk in the Plan and enhance the security of members’ benefits. We are very happy to have formed this partnership with Scottish Widows and this buy-in, completed in a very short timeframe in what has been a challenging year in financial markets, is another important step in the Plan’s de-risking journey.”

 Mike Edwards, Partner at Aon, said: “We are very pleased to help the Trustee secure this transaction with Scottish Widows – it is a great outcome for members. The transaction was enabled by the clear objectives set by the Trustee and a bespoke process we designed to enable the Trustee to achieve those aims by taking advantage of current bulk annuity market dynamics. Over 2020 these dynamics have been characterised by intermittent periods of heightened market volatility and insurer appetite.”

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