Aviva has completed a £1.5 billion bulk purchase annuity full-scheme buy-in with the Michelin Pension and Life Assurance Plan.
This deal, finalised in September 2024, involves an in-specie transfer of assets. It secures the benefits for the scheme’s 15,000 members. XPS Group acted as lead adviser on the transaction, and Pinsent Masons provided legal advice.
Aviva CEO of insurance, wealth, and retirement Doug Brown says: “This is a significant deal showing the strength of our bulk purchase annuity business in securing good outcomes for pension scheme members. We are well positioned to carry out large-scale transactions in addition to our capability in the small and medium scheme market.”
Aviva senior deal manager Sarah Cave says: “It’s been a pleasure to work with the Trustee and their experienced advisers on such a well-prepared transaction. Their approach and clear strategy made this transaction attractive to us and enabled us to put our best foot forward when bidding. We are really pleased that the Trustee has chosen to partner with Aviva. This deal further demonstrates Aviva’s capability for structuring transactions to meet specific client needs.”
Michelin Pension and Life Assurance plan chair of trustees Vincent Dormieux says: “The Trustee is delighted to have improved the long-term security of members’ benefits by completing this buy-in transaction with Aviva. I’d like to place on record our sincere thanks to our full advisory team and to the Michelin Group for its support through the process.”
XPS Group head of risk settlement Stephen Purves says: “We’re really pleased to have led on this important transaction and to have helped the Trustee secure its members’ benefits with Aviva. We were always expecting to see lots of large transactions complete in H2 2024 and we developed a strategy to make this transaction stand out in a busy market. This included simplifying our transaction requirements before going to the insurers and an ‘in-house’ solution to deal with the Plan’s illiquid assets.”
