M&G plc (“M&G”) today announces that it has completed a £60 million Bulk Purchase Annuity (BPA) transaction, securing the pension benefits of more than 750 members. The transaction was executed by the Prudential Assurance Company Limited (“Prudential”), M&G’s wholly-owned subsidiary providing life and pensions solutions.
The transaction was made possible through the firm’s £134 billion With-Profits Fund entering into a simultaneous market transaction to purchase an illiquid asset in-specie from the pension scheme. This would typically pose a barrier to insuring member benefits, however, M&G’s ability to invest in illiquid assets through its market-leading With-Profits Fund enabled a mutually beneficial solution to be created for the Fund, the scheme and its members.
M&G is a founding member of the BPA market with over 25 years of experience implementing and administering bulk annuity transactions, backed by a robust balance sheet and a firm commitment to meeting customers’ needs. Looking ahead, M&G will continue to strengthen its competitive position through product innovation, further differentiating the product suite, and supporting long-term growth in the BPA market, where the business expects to achieve £3–£4 billion of annual sales by 2027.
The Trustee was advised on the transaction by Gallagher, the global insurance, risk and consulting firm. Appointed as risk transfer broker in mid-2025, Gallagher worked intensively to prepare the scheme for a transaction and deliver strategic advice on the Trustee’s options for illiquid assets. Gallagher’s efficient project management framework meant the scheme moved from kick-off to transaction execution in less than six months. Independent Governance Group was the Scheme’s Independent Trustee and Sackers were legal advisers during the transaction.
Rosie Fantom, Head of Bulk Annuity Origination & Execution at M&G, said: “We are delighted to partner with the Trustee to help secure the long-term financial future of more than 750 members. This transaction exemplifies how we can deliver tailored solutions for schemes of all sizes facing particular challenges, by drawing on the strength and flexibility of our wider business. By accepting the illiquid asset in-specie, in a mutually beneficial transaction, we were able to resolve a major obstacle for the Trustee, allowing the pension scheme and sponsor to reduce risks by insuring members’ benefits. We look forward to supporting more schemes as they navigate their de-risking journeys and achieve greater certainty for members.”
Roger Mattingly, Chair of Trustees, Independent Governance Group said: “We are pleased to have partnered with M&G on this transaction. Their bespoke solution in addressing the Trustee’s illiquid asset challenge was instrumental in achieving the objectives of both the Trustee and the Sponsor. I would like to extend my gratitude to our risk transfer advisers, Gallagher, whose expert guidance, and strong project management ensured a seamless and efficient process. I would also like to thank our legal advisers, Sackers, for their clear and pragmatic advice throughout. This collaboration has delivered a fantastic outcome for the long-term security of member benefits.”
Callum Slattery, Senior Risk Transfer Actuary at Gallagher, said: “It was a privilege to advise the Trustee on this unique transaction. M&G demonstrated a willingness to understand the scheme’s specific needs and work creatively with the Trustee to address the challenge posed by the scheme’s illiquid assets. Their ability to craft a bespoke solution made them a natural partner for this transaction. I am grateful to M&G, the IGG team and our co-advisers for their collaboration and shared appreciation for the scheme’s objectives. This collective effort has delivered an outstanding result for members.”
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