Standard Life completes £1 billion buy-in transaction with Chubb Pension Plan and Chubb Security Pension Fund

6 July 2023

Standard Life, part of Phoenix Group, has concluded a £1 billion Bulk Purchase Annuity (“BPA”) transaction covering two schemes, the Chubb Pension Plan and the Chubb Security Pension Fund.

• Bulk Purchase Annuities insures the benefit of c.14,000 pension scheme members

Standard Life, part of Phoenix Group, has concluded a £1 billion Bulk Purchase Annuity (“BPA”) transaction covering two schemes, the Chubb Pension Plan (“the Plan”) and the Chubb Security Pension Fund (“the Fund”), which are both sponsored by subsidiaries of APi Group Corporation.

The transaction was agreed in June 2023 and covers c.14,000 pension members over both schemes.

Barnett Waddingham acted as lead actuarial and investment advisers, while legal advice was provided to both sets of Trustees by CMS.

Involving two schemes, the buy-in is a prime example of the continued growth of Standard Life’s BPA proposition, and further highlights Standard Life’s strength in, and commitment to, the BPA market.

Matt Richards, Senior Business Development Manager at Standard Life, said: “This deal marks a smooth and efficient transaction that has insured the liabilities for almost 14,000 members and enabled the schemes to successfully de-risk in an uncertain economic environment. Throughout the transaction process there has been an open and collaborative approach between all parties, which has been key to the success of this transaction which we are delighted to have completed with the Trustees. Having prepared well, and being willing to move quickly, the Trustees were able to ensure a favourable outcome for their members.”

Brian McGowan, Chairman of both Trustee Boards, said: “We are delighted to have partnered with Standard Life to provide long term security and financial certainty for all members. On behalf of the Trustees, I would like to thank our advisors Barnett Waddingham and CMS for their advice and to thank the sponsoring employer for their support. The various teams worked together extremely well to secure this complicated deal.”

Simon Bramwell, Partner at Barnett Waddingham, said: “We are very proud to have advised the Trustees on these sizeable and complex buy-ins. This could not have been achieved without the significant amount of preparatory work carried out by the Trustees and the efforts of all parties working closely together to get the best result for both schemes.”

Amanda Chamming’s, Partner at CMS, said: “We are delighted to have advised the Trustees on this transaction with Standard Life. Collaboration with Barnett Waddingham, Standard Life and all other parties involved was a key element to delivering the buy-ins on time in such a busy market. It’s really pleasing to secure such a positive outcome for members of the schemes.”

Source: Phoenix