Standard Life, part of Phoenix Group, completed a £1.9bn Bulk Purchase Annuity transaction with the Sedgwick Section of the MMC UK Pension Fund (the “Section” and the “Fund”) in July 2025. The sponsoring employer, Marsh McLennan, is a global leader in risk, strategy and people. Mercer, who acted as the lead broker on the transaction, is a business of Marsh McLennan.
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The transaction covers the benefits of all c. 6,500 members of the Section, who were previously employed by Sedgwick Group, acquired by Marsh McLennan in 1998.
The buy-in includes novation of the Section’s three existing longevity swaps with Canada Life Re, Munich Re, and The Prudential Insurance Company of America (PICA) from the Guernsey-based insurance captive vehicle, Mercer ICC Limited.
Separate teams at Mercer advised the Trustee and Marsh McLennan, providing risk transfer, actuarial, investment, insurer financial strength and post-transaction management advice. Linklaters and Herbert Smith Freehills Kramer provided legal advice to the Trustee and Marsh McLennan, respectively. Eversheds Sutherland LLP advised Standard Life.
Kieran Mistry, Director of Defined Benefit Solutions at Standard Life, comments: “We are pleased to have supported the Trustee and Company in securing their members’ benefits with a bulk purchase annuity policy. Executing this complex transaction required a highly collaborative approach between all parties, leveraging the strong relationships between Mercer, Standard Life and the reinsurers. We are grateful for the commitment and teamwork shown by the Trustee, Marsh McLennan, and their advisers throughout the process, and the support of the teams at Canada Life Re, Munich Re, and PICA.”
Trustee Chairman Bruce Rigby said: “We see this bulk annuity transaction as the natural next step and a significant milestone for the Sedgwick Section. The buy-in helps the Trustee in continuing to safeguard the financial security of members’ benefits. The Trustee and Marsh McLennan commissioned a full review of the bulk annuity market and selected Standard Life as the overall most attractive immediate and long-term partner for the Fund’s Sedgwick Section liabilities.”
Phil Parkinson, Mercer’s UK Investments and Retirement Leader, commented: “We are delighted to have led this transaction, utilising our extensive and varied risk transfer capabilities across two separate risk transfer teams working on behalf of the Trustee and Marsh McLennan. Both teams collaborated closely with Standard Life, the reinsurers and the various legal advisers to optimise pricing and terms, maximise efficiency and minimise risk for both the Trustee and Marsh McLennan. I also want to commend the Mercer actuarial and investment teams who were pivotal to reaching this position and also instrumental to the transaction. With the new guidance on end-game options, Mercer is working with clients to provide flexibility so they can find the right strategy to suit their individual objectives and situation.”
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