ABB completes £700m buy-in
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Engineering firm ABB’s UK pension scheme has bought in £700m of liabilities relating to more than 4,450 pensioners and 2,900 deferred members.
The ABB Plan’s transaction with Aviva completed in July and included a £620m in-specie asset transfer of UK and US corporate bonds and UK gilts. It marks the first larger deal announced by Aviva this year, after writing several £1bn-plus buy-ins last year.
Aon’s bulk annuity market update H1, published on Tuesday, found that volumes were lower in the first half of 2025 and dominated by transactions of £100m or less, but maintains that the market remains “buoyant with a high number of transactions completed and strong insurer capacity”.
The ABB transaction “is the fruition of several years of careful planning, and we are delighted that the buy-in is now completed,” said trustee chair Carolan Dobson.
Lee House, pension management at ABB, thanked the trustees and advisers, adding: “This is a hugely successful outcome for us as part of our pension strategy and corporate objectives.”
The trustees were advised by WTW, who led the transaction process, with legal advice provided by Eversheds. LCP were the lead transaction advisers to ABB.
LCP partner Ricky Patel explained that ABB’s objective was to reduce worldwide pension risk as part of its global strategy. As one of the largest defined benefit plans in the group, he said the UK buy-in was a “significant milestone” in achieving this.
Senior deal manager at Aviva, Andy Morley, said: “The transaction is testament to the strong relationship and shared commitment from all parties to safeguard pension benefits.”
This is the first larger bulk annuity transaction announced by Aviva this year. So far in 2025, it has revealed a £249m buy-in with the Molins UK Pension Fund, a £270m buy-in with the RSP Section of the Morrisons Retirement Saver Plan, and a £4.8m buyout of the A Gomez Ltd Retirement Benefits Scheme.
The ABB Plan’s transaction with Aviva completed in July and included a £620m in-specie asset transfer of UK and US corporate bonds and UK gilts. It marks the first larger deal announced by Aviva this year, after writing several £1bn-plus buy-ins last year.
Aon’s bulk annuity market update H1, published on Tuesday, found that volumes were lower in the first half of 2025 and dominated by transactions of £100m or less, but maintains that the market remains “buoyant with a high number of transactions completed and strong insurer capacity”.
The ABB transaction “is the fruition of several years of careful planning, and we are delighted that the buy-in is now completed,” said trustee chair Carolan Dobson.
Lee House, pension management at ABB, thanked the trustees and advisers, adding: “This is a hugely successful outcome for us as part of our pension strategy and corporate objectives.”
The trustees were advised by WTW, who led the transaction process, with legal advice provided by Eversheds. LCP were the lead transaction advisers to ABB.
LCP partner Ricky Patel explained that ABB’s objective was to reduce worldwide pension risk as part of its global strategy. As one of the largest defined benefit plans in the group, he said the UK buy-in was a “significant milestone” in achieving this.
Senior deal manager at Aviva, Andy Morley, said: “The transaction is testament to the strong relationship and shared commitment from all parties to safeguard pension benefits.”
This is the first larger bulk annuity transaction announced by Aviva this year. So far in 2025, it has revealed a £249m buy-in with the Molins UK Pension Fund, a £270m buy-in with the RSP Section of the Morrisons Retirement Saver Plan, and a £4.8m buyout of the A Gomez Ltd Retirement Benefits Scheme.
