Reach signs £270m buy-in
Image: Claudio Divizia - stock.adobe.com
Pardon the Interruption
This article is just an example of the content available to mallowstreet members.
On average over 150 pieces of new content are published from across the industry per month on mallowstreet. Members get access to the latest developments, industry views and a range of in-depth research.
All the content on mallowstreet is accredited for CPD by the PMI and is available to trustees for free.
Reach plc, the former Trinity Mirror news publisher, has entered a £270m bulk purchase annuity to insure liabilities for more than 3,200 members of the Trinity Retirement Benefit Scheme.
The scheme’s second and final buy-in, insuring all remaining members, was executed by the Prudential Assurance Company, a wholly owned subsidiary of M&G. Last year, Reach’s MGN Pension Scheme was bought in by Just Group.
Trustee chair of the Trinity Retirement scheme Susan Anyan, from Capital Cranfield, said: “We are delighted to have been able to secure members’ benefits as a result of this transaction, following an intensive and highly collaborative process. This successful outcome reflects the hard work, shared ambition and dedication of both the trustee and Reach plc, heavily supported throughout by a multidisciplinary team of expert advisers.”
Reach chief executive Darren Fisher called the transaction “an important milestone” for both the company and the scheme.
“We have worked closely with the trustee of the scheme over several years to reach this point, and it is a testament to the collaborative approach taken by all parties that we have been able to achieve this positive outcome for both the scheme members and the company’s shareholders,” he said.
“This transaction underlines M&G’s position as a leading provider in the bulk annuity market and we remain committed to supporting trustees and schemes in managing pension risk, backed by our strong financial foundation and proven expertise in execution,” said Rosie Fantom, head of pension risk transfer origination and execution at M&G.
M&G said the trustees recognised M&G’s “strong financial position and well-known brand” and were “assured by the flexibility offered by the proposition and its alignment with a range of key requirements, including a bespoke price lock matching the scheme’s existing assets, and M&G’s ability to support a continuation of excellent member service”.
Ruth Ward at LCP was the lead transaction adviser for the scheme, with the trustees taking legal advice from DLA Piper, with Aon as scheme actuary and Mercer for covenant advice. Hymans Robertson and Slaughter and May advised Reach.
M&G said it plans to strengthen its competitive position through product innovation, further differentiating the product suite, and supporting long-term growth in the BPA market, expecting to make £3bn to £4bn of annual sales by 2027. M&G re-entered the bulk annuity market in September 2023 after a seven-year absence. Last October, it put total new business written since 2023 at over £1.7bn.
Reach emerged from the Mirror Group previously owned by Robert Maxwell, who had embezzled large sums from the publisher’s pension fund. It was Maxwell’s fraud that led to the creation of the Pensions Act 1995, bringing in member protections including a requirement for member-nominated trustees, as well as creating the predecessor of the Pensions Regulator.
The scheme’s second and final buy-in, insuring all remaining members, was executed by the Prudential Assurance Company, a wholly owned subsidiary of M&G. Last year, Reach’s MGN Pension Scheme was bought in by Just Group.
Trustee chair of the Trinity Retirement scheme Susan Anyan, from Capital Cranfield, said: “We are delighted to have been able to secure members’ benefits as a result of this transaction, following an intensive and highly collaborative process. This successful outcome reflects the hard work, shared ambition and dedication of both the trustee and Reach plc, heavily supported throughout by a multidisciplinary team of expert advisers.”
Reach chief executive Darren Fisher called the transaction “an important milestone” for both the company and the scheme.
“We have worked closely with the trustee of the scheme over several years to reach this point, and it is a testament to the collaborative approach taken by all parties that we have been able to achieve this positive outcome for both the scheme members and the company’s shareholders,” he said.
“This transaction underlines M&G’s position as a leading provider in the bulk annuity market and we remain committed to supporting trustees and schemes in managing pension risk, backed by our strong financial foundation and proven expertise in execution,” said Rosie Fantom, head of pension risk transfer origination and execution at M&G.
M&G said the trustees recognised M&G’s “strong financial position and well-known brand” and were “assured by the flexibility offered by the proposition and its alignment with a range of key requirements, including a bespoke price lock matching the scheme’s existing assets, and M&G’s ability to support a continuation of excellent member service”.
Ruth Ward at LCP was the lead transaction adviser for the scheme, with the trustees taking legal advice from DLA Piper, with Aon as scheme actuary and Mercer for covenant advice. Hymans Robertson and Slaughter and May advised Reach.
M&G said it plans to strengthen its competitive position through product innovation, further differentiating the product suite, and supporting long-term growth in the BPA market, expecting to make £3bn to £4bn of annual sales by 2027. M&G re-entered the bulk annuity market in September 2023 after a seven-year absence. Last October, it put total new business written since 2023 at over £1.7bn.
Reach emerged from the Mirror Group previously owned by Robert Maxwell, who had embezzled large sums from the publisher’s pension fund. It was Maxwell’s fraud that led to the creation of the Pensions Act 1995, bringing in member protections including a requirement for member-nominated trustees, as well as creating the predecessor of the Pensions Regulator.
