Aviva announces £900m bulk annuity deal with Kingfisher Pension Scheme

23 July 2021

Aviva publishes: “Aviva announces it has completed a £900m bulk purchase annuity transaction in July, with the Kingfisher Pension Scheme. Kingfisher plc is a British multinational retailing company headquartered in London, which manages brands including B&Q and Screwfix.

Aviva will insure the defined benefit pension liabilities for over 8000 members, taking responsibility for the investment and longevity risk of these members from the Plan. Members will see no change in the amount of their benefits or the way in which they are paid as a result of the transaction.

The process to select an insurer and negotiate terms was led by Aon. The trustee received actuarial advice from Hymans Robertson and legal advice from Eversheds Sutherland (International) LLP and Aviva was advised by DLA Piper.

Jamie Cole, Head of Bulk Purchase Annuity Origination at Aviva, said

“Kingfisher is a leading multinational retailer with a strong presence in the UK and we’re proud to have helped the Trustees of the Pension Scheme to secure benefits for their members. Throughout the process we’ve been working to an ambitious timeline and thanks to the expertise and collaboration of all parties we completed the transaction within three weeks of exclusivity.”

Clive Gilchrist of BESTrustees, Chair of Trustees the Kingfisher Pension Scheme, said

“This is great news for our members. The Trustee, with support from the Kingfisher pension executive team and our external advisers, has successfully completed a third buy-in and secured these existing pensioner members’ benefits through Aviva Life & Pensions UK limited, an insurer which has strong financial credentials and a track record of excellent customer service.”

John Baines, Head of Bulk Annuities at Aon, said

“This third, and largest, buy-in transaction in which Aon has worked with the Kingfisher Trustee really demonstrates the value of developing a clear strategy. The tried-and-tested decision-making framework allowed them to use their previous experience to once again benefit scheme members. The first half of 2021 saw a relatively modest level of activity in the bulk annuity market, which gave rise to an opportunity for the Trustee to move quickly to capture excellent market pricing.”

Simon Daniel, Partner at Eversheds Sutherland, said

“The Trustee had clear objectives for this transaction and was very well prepared. Eversheds Sutherland is delighted to have been part of the team that delivered it for the Scheme. Aviva is a new partner for the Trustee and it was great to work with its advisers to put in place contractual arrangements that meet all parties’ requirements and, most importantly, provide further benefit security for members.””

Source: Aviva