Aviva takes Interserve scheme to buyout
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Aviva has insured another £400m of pension liabilities for construction firm Interserve, ending its journey to buyout following a smaller buy-in in 2014 with the insurer.
Aviva insured the pension liabilities for the remaining members of the Interserve Section of the Interserve Pension Scheme, comprising 4,300 pensioners and 2,800 deferred members.
The transaction secured the liabilities of more than 7,000 members and follows the £300m pensioner-only buy-in in 2014.
Jamie Cole, head of bulk purchase annuity origination at Aviva, said the deal has been complex comprising a new buy-in as well as the restructuring of the existing buy-in.
He added: “We’ve worked with the scheme for more than eight years, so naturally we’re delighted to have been chosen to support them to complete their journey to eventual buy-out. All parties have worked very closely to achieve this optimal outcome in a timely and efficient manner.”
Yadu Dashora, partner at Lane Clark and Peacock, said it was an “innovative transaction” in many respects due to the scheme’s circumstances.
“We are delighted to have been able to use our experience of restructuring cases to secure members’ benefits with Aviva. It has been a pleasure working with a trustee board that clearly puts members’ interests first, rather than following the path of least resistance.”
Tilbury Douglas Construction (TDC), previously part of the Interserve Group, was the sponsoring employer of the scheme.
David Trapnell, chair of trustees of the Interserve Pension Scheme, said the buyout with Aviva provides security and certainty to more than 7,000 scheme members:
“In order to best protect members’ interests, it was crucial we acted to secure a long-term resolution and Aviva offered the best outcome. We would like to thank Aviva and our advisers who helped us get to this stage.”
TDC chose Aviva following a market process led by Lane Clark and Peacock (LCP), and the scheme trustees were independently advised throughout the process by LCP and Sackers, who provided legal advice.
The sponsor and Interserve Group were advised by PricewaterhouseCoopers and law firm Slaughter and May.
By Stephanie Baxter
By Stephanie Baxter
