Marvin OnumonuM&G has completed a £235m bulk purchase annuity (BPA) to cover the pension benefits of more than 3,000 members of the Avon Cosmetics Pension Plan.
The deal was carried out by the Prudential Assurance Company Limited, M&G’s life and pensions subsidiary.
The trustees selected M&G for its ability to insure and administer the plan’s complex benefits and for the support offered in ongoing management.
WTW acted as risk transfer adviser and scheme actuary, CMS were legal advisers, and SEI provided investment advice.
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.”
