The Greggs plc 1978 Retirement and Death Benefit Scheme has completed a £100m buy-in covering the majority of the defined benefit scheme’s liabilities. 

The buy-in was entered into with Aviva. Sponsoring company Greggs, the Newcastle-based chain selling baked goods, provided additional funding support for the buy-in as part of the trustees’ long-term derisking strategy.  

Trustee chair David Brown said: “I am delighted that we have been supported by Greggs plc and our advisers Hymans Robertson, Eversheds and Barnett Waddingham, to enable to us to reach a buy-in agreement with our chosen insurance company Aviva. The partnership with Aviva allows us to take the next step in our de-risking strategy.” 

Verity Hastie, risk transfer specialist at Hymans, said: “The scheme is now in a solid financial position, and we look forward to helping the trustee as they continue their journey post buy-in.” 

The trustee and Greggs had “clear priorities, from the outset”, said Aviva deal manager Paul Donnelly, which was “to partner with a financially strong and trusted insurance company, with a focus on first-class member care and a responsible investment ethos”.   

Aviva has revealed deals with smaller pension funds in the past few months, including for Taunton School, Sibelco and European Metal Recycling. 

Derisking activity has been high and is expected to stay so this year amid strong DB funding levels. In total, insurers wrote about £28bn of buy-ins and buyouts in the second half of last year, up from roughly £16bn in the last six months of 2022, analysis by consultancy Hymans Robertson has found.  The trend continues unabated, despite government efforts to entice sponsors to run their schemes on by offering easier access to DB surplus.