Marvin OnumonuRoyal London has completed its biggest external bulk purchase annuity (BPA) deal to date with a £275m buy-in for the Grant Thornton Pensions Fund.
Nine insurers put forward proposals for the deal.
Aon advised the trustee and the firm, Osborne Clarke advised the trustee, and DLA Piper advised Royal London.
Barnett Waddingham and Cardano gave actuarial and investment advice to the trustee.
Royal London and the trustee have set out a plan for buyout of the fund.
When this is done, 2,200 members will become direct policyholders of Royal London.
Mark Sharkey, BPA origination lead at Royal London, said: “We’re incredibly proud to have been selected by the Trustee to partner with them on this transaction.
“We now look forward to building on the brilliant relationship that has been fostered with the Trustee, Aon, and Osborne Clarke, as we work towards welcoming their members to Royal London.
“As our largest external transaction to date, we hope the scale of this buy-in will further strengthen the appeal of our mutual-led proposition for many more trustee boards in the future.”
Leah Evans, partner at Aon, said: “This is such a positive outcome for members, the Trustees and the Firm.
“Against the backdrop of a change in Firm ownership, we were able to design a process that delivered maximum insurer engagement and choice for the Trustees and allowed the Firm to complete its parallel corporate restructuring activity with clarity and confidence over their pensions obligations.
“In a market where hundreds of schemes are navigating the path from buy-in to buyout and getting caught in bottlenecks, the approach to post transaction implementation agreed with Royal London provides confidence that the Fund will achieve buyout on time.”
Carl Williams, chair of the Grant Thornton Pensions Fund trustees, said: “This transaction is a fantastic outcome for our members.
“The very competitive process and the insights provided by Aon throughout, meant we really could weigh up all options, including non-price factors, and we are confident that our members will be well supported going forward.
“This transaction and the agreed timetable to move on to full buyout reflects the strong support and collaborative engagement of all our advisors.”
Malcolm Gomersall, CEO of Grant Thornton UK, said: “This transaction allows the Firm to move forward with a focus on its own growth strategy, while knowing that the members of the Fund are well looked after.
“As a challenger in our own market place, we are a firm believer in selecting partners on the basis of capability and willingness to partner in achieving a common goal.”
