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Standard Life to expand pension risk transfer business

The deal aims to support defined benefit pension schemes of all sizes, including larger and more complex schemes, subject to regulatory approval.

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Standard Life has launched a partnership with CVC, Prudential Financial, Goldman Sachs, MS&AD and other investors to expand its pension risk transfer business. 

The partnership is backed by up to £2bn in capital over five years, including £500m from Standard Life, with the rest from the consortium led by CVC and Prudential Financial. 

The deal aims to support defined benefit pension schemes of all sizes, including larger and more complex schemes, subject to regulatory approval.

The partnership brings together Standard Life’s experience in pension risk transfer with the consortium’s capital and investment capabilities. 

This will allow Standard Life to offer more schemes access to risk transfer deals and support the long-term security of members’ benefits. 

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The partnership will also provide access to private markets assets, helping to back pension scheme liabilities and improve pricing and flexibility for trustees.

Andy Briggs, group CEO at Standard Life, said: “We are delighted to announce the expansion of our PRT business in partnership with a group of internationally recognised financial institutions, who are committing global capital into the UK PRT market. 

“For over 200 years, Standard Life has supported people across the UK to plan for and secure their retirements, and this focus and commitment remains central to our strategy today. 

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“By bringing together our comprehensive PRT capabilities with our partners’ specialist private markets capabilities and significant capital resources, coupled with a trusted and well-known brand in Standard Life, we will be able to offer trustees and sponsors for the largest pension schemes an alternative to secure the pensions of their members across the UK.”

Briggs added: “This partnership further accelerates Standard Life’s vision to become the UK’s leading retirement savings and income business.”

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Nuwan Goonetilleke, CEO of Standard Life PRT Solutions and interim CEO, retirement solutions and asset management at Standard Life, said: “This partnership has been deliberately structured to continue to secure high-quality outcomes for members, while supporting trustees in executing complex de-risking transactions with confidence, combining Standard Life’s expertise with access to a diversified set of best-in-class private markets originators. 

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“Our Consortium approach enhances our ability to deliver competitive pricing and innovative structuring for trustees, whilst maintaining Standard Life’s independence and control.”

Peter Rutland, president at CVC, said: “This partnership builds on CVC’s experience in the attractive UK PRT market through a new, long-term capital commitment, whilst leveraging Standard Life’s track record and established proposition with trustees. 

“The partnership is ideally suited to CVC’s insurance asset management franchise and credit origination capabilities. 

“We look forward to working in close collaboration with Standard Life and our consortium partners in the years ahead.”

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Phil Waldeck, head of US businesses at Prudential Financial, said: “This partnership, at the intersection of retirement and asset management, is a highly strategic investment that advances our commitment to enhancing retirement security through guaranteed income solutions. 

“It strengthens our position as a global leader in retirement while combining PGIM’s leading private asset origination capabilities with the complementary strengths of the broader consortium to create a differentiated platform for growth. 

“Our participation reflects our strong conviction in Standard Life’s differentiated proposition and its track record in delivering outcomes for pension scheme trustees and members.”

Vivek Bantwal, global co-head of private credit at Goldman Sachs Alternatives, said: “Goldman Sachs has deep resources to provide customised capital solutions for Standard Life and its corporate pension clients. 

“We look forward to serving their needs by leveraging our rigorous credit selection process and deep asset origination funnel through the investment bank. 

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“Across the firm, we have expertise in markets, risk management, structuring and liquidity solutions that, when combined with our knowledge of the UK PRT market, will be highly supportive for the Partnership in delivering efficient and well-structured solutions for large and complex PRT transactions.” 

Hironori Morimoto, chief global officer, MS&AD, said: “This investment builds on MS&AD’s long-standing strategic relationship with Standard Life and our position as its largest shareholder. 

“It reflects our confidence in both the UK Pension Risk Transfer market and the strength of the proposition being created through this Partnership. 

“Standard Life has established a strong reputation for delivering high-quality outcomes for pension schemes and their members, and we believe that, combined with the private markets origination capabilities of CVC, PFI and Goldman Sachs, means the Partnership creates a compelling platform for long-term growth.”

Morimoto added: “We look forward to working closely with Standard Life and our consortium partners, sharing expertise and learning from one of the world’s most developed PRT markets to support innovation and greater efficiency across our own insurance businesses.”

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