M&G plc (“M&G”) today announces that it has completed a £111 million bulk purchase annuity transaction, securing the pension scheme benefits of 466 pensioner and deferred members of a UK based asset manager.
M&G executed and completed the transaction in a compressed timeline, with strong collaboration from the Trustees, Sponsor and all parties ensuring that members’ long-term security was central to the process.
Since re-entering the bulk annuity market in September 2023, M&G has since written almost £1.5 billion of new business, including the first-of-its-kind Value Share BPA transaction announced in November 2024.
Kerrigan Procter, Managing Director of Corporate Risk Solutions at M&G, said: “This deal is possible thanks to the strong alignment of interest between the Sponsoring company, the Trustees and M&G, while continuing to place members’ security at the heart of the transaction. It represents yet another important step in the delivery of M&G’s strategic objectives and showcases the team’s ability to work effectively and efficiently with clients to meet their derisking goals and deliver sustainable growth.
“2025 is expected to be yet another strong year for BPA transactions as market conditions continue to prompt many schemes to seek solutions to manage their liabilities and secure their members’ benefits. We will continue to leverage the strength of our unique business model and deep expertise in private markets to develop derisking solutions that meet the evolving needs of our clients.”
Roger Mattingly, Chair of the Trustees, IGG, said: “As Trustees we are delighted with the policy secured with M&G, which provides certainty to the Scheme members and the Scheme sponsor on the financing of member benefits into the future. Our advisers and M&G worked well to achieve the transaction in short timescales.”
Karen Gainsford, Partner, Isio, said: “The careful and considered engagement of the Trustees and the Sponsoring company throughout the preparation phase meant that insurer proposals could be assessed quickly and objectively once received, allowing the Scheme to capitalise on the compelling offer provided by M&G.”
The insuring entity is The Prudential Assurance Company Limited (“PAC”), M&G’s wholly-owned subsidiary offering life and pensions solutions. The Trustees, which included IGG as a professional trustee, were advised on the transaction by Isio as risk settlement adviser and investment consultant, Hymans as Scheme Actuary, Broadstone as Administrators and CMS as legal advisers. Herbert Smith Freehills provided legal advice to the Company. Hogan Lovells provided legal advice to M&G.
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