Standard Life has concluded a £335m buy-in transaction with the London Stock Exchange Group Pension Scheme. 

This bulk purchase annuity arrangement covers 1,740 members from both sections of the scheme - the LSE Section and LCH Section. 

Catherine Redmond, trustee executive at Bestrustees, who chairs the scheme, said: “This transaction provides greater certainty for our members and reduces the risks in the scheme. We appreciate the support from the sponsor throughout the scheme’s journey as well as the guidance from our advisers in taking this next step on our derisking journey and helping us achieve our long-term goal of being fully insured.” 

The transaction completed in May. 

Rhian Littlewood, senior business development manager at Standard Life, said: “Increased funding levels meant that the scheme was well positioned to explore how to reduce its risks through a bulk purchase annuity deal. Through this collective effort, the scheme was able to seize an ideal market opportunity, resulting in a smooth and efficient process, and we are pleased to have been part of this solution.” 

She noted “heightened levels of demand” in the BPA market due to higher interest rates, narrowing the funding gap of many defined benefit schemes. 

“This is reflected in our record H1 2023 BPA activity, having written premiums totalling £3.2bn,” Littlewood said.  

Notable deals that Standard Life secured this year include a £1.2bn buy-in transaction with the Mitchells & Butlers Pension Plan and an £80m buy-in with the MGM Assurance Staff Pension Plan.

For the latest transaction, Aon acted as the lead advisers, while legal advice was provided to the trustees by Eversheds Sutherland and investment advice by Redington. Standard Life was advised by Herbert Smith Freehills and ITM.