M&G plc (“M&G”) today announces a £235 million bulk purchase annuity, securing pension benefits of over 3,000 members of the Avon Cosmetics Pension Plan (the “Plan”). A global company with 140 years of influencing beauty, Avon is an iconic brand built on community. Millions of independent Representatives share Avon products with their customers, while the brand’s omnichannel ecosystem ensures consumers experience Avon whenever and however they choose.
The transaction, by the Prudential Assurance Company Limited (“PAC”), M&G’s wholly-owned subsidiary providing life and pensions solutions, is the latest to be announced by M&G, having delivered total new business volumes of £1.5 billion during 2025.
M&G’s strong proposition was well received by the Trustees, which recognised M&G’s ability to insure and administer the Plan’s complex benefit structure. They also valued the enhanced level of support M&G could provide to the Trustees in the ongoing management of the Plan, ultimately allowing members to continue to benefit from an excellent member experience.
The Trustees were advised on the transaction by WTW as risk transfer adviser and scheme actuary, CMS as legal advisers, and SEI as investment adviser.
Rosie Fantom, Head of Bulk Annuity Origination & Execution at M&G, said: “This transaction marks an important step in securing the future benefits of over 3,000 Plan members. It highlights our ability to deliver tailored solutions for complex schemes and reinforces our focus on providing certainty and confidence for trustees and members alike.”
Michelle Parczuk, Chair of Trustees and Chief People Officer, Avon, said: “The Trustees are delighted to have partnered with M&G to complete this transaction. This buy-in helps to provide greater certainty to members about the security of their benefits and represents a pivotal moment in the Plan’s de-risking journey. My thanks to everyone involved for a great team effort in making this happen.”
Gemma Millington, Senior Director, WTW, said: “It was a pleasure to work with the Trustees, Avon, M&G and the wider advisory teams to deliver the transaction objectives. In particular, the Trustees were focused on ensuring the buy-in achieved an optimal outcome for members, including the preservation of all member options and coverage of complex Plan benefits. We’re seeing strong market competition delivering attractive pricing and pushing insurers to continually improve member experience.”
M&G is a founding member of the BPA market and has a strong track record in pension risk transfer, backed by a robust balance sheet and commitment to customers. M&G continues to strengthen its position through product innovation, further differentiating its product suite, and supporting long-term growth in the BPA market.
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