Aviva reveals £400m buy-in with Deutsche Bank
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Aviva has completed a £400m bulk purchase annuity buy-in transaction with the trustees of the Defined Benefit (UK) Pension Scheme of investment bank Deutsche Bank, insuring the pension liabilities for nearly 1,300 members.
This tranche of the scheme liabilities was completed using an umbrella contract, under which the scheme could complete future transactions.
Jeremy Sowden, head of pension and benefits UKI at Deutsche Bank, said the move allows Deutsche Bank to hedge a “material portion” of the liabilities of the scheme, with the majority of pensions currently in payment now insured.
“It is another step on our ongoing journey to reduce risk in relation to our defined benefit pension obligations, benefitting the scheme members, the trustee board and the bank. We were able to do so on mutually attractive terms, including comprehensive residual risks cover that further helps the bank manage its risk exposure. We will continue to work closely with the trustee board to evaluate future derisking opportunities,” he said.
The scheme trustees were advised by LCP and law firm CMS.
David Fink, partner at LCP, said the bulk annuities market could be “very busy” over the next few years.
The deal was completed in September 2022.
Earlier this year, Aviva secured similar deals with fashion retailer Arcadia Group in an £850m buy-in and with construction firm Interserve in a £400m buy-in.
Will Aviva secure the largest market share in pension risks transfers in H1?
