Aviva has completed a £4m full scheme buy-out with the pension scheme of Finnair — the largest airline in Finland.
Aviva initially completed a buy-in and within just two months moved to a full buy out, a record time for this type of transaction. This transaction was processed through Aviva’s Clarity service, adopting their fast-track finalisation process for schemes moving rapidly to buy-out.
The speed of this transaction required significant work by Broadstone in advance on the data.
Broadstone has been the scheme’s longstanding actuary, investment consultant and administrator and it also acted as annuity broker for this end-game deal.
Legal advice for the trustees was provided by Arc Pensions Law and was provided in-house for Aviva.
Brodstone senior actuarial director and deal lead Mark Channon says: “This was a perfect example of how Broadstone’s full-service approach to a buy-in using the SM&RT Insure approach leads to excellent outcomes.
“Working seamlessly with the scheme actuary and the administration team meant we were able to present a perfectly prepared scheme for the transaction. Collaborating with Aviva’s implementation team ensured a record turnaround time of two months to finalise the buy-in and move the scheme rapidly to buy out.”
Nick Boyes, trustee director adds: “Broadstone identified at an early stage the suitability of the scheme for Aviva’s Clarity proposition with fast-track option.
“Broadstone and Arc then worked quickly and diligently with Aviva to prepare the scheme so it was suitable, not just for the initial buy-in but to be in a position to convert it rapidly to the buyout afterwards – an incredible result that will save the scheme significant ongoing costs.
“The trustee is thankful for the contribution made by the sponsoring company which allowed the transaction to proceed.”
Andrew Shaposhnikov, senior business development manager at Aviva adds: “This transaction is a great example of the benefits of Aviva Clarity and the Fast-track option for schemes moving rapidly to buy-out.
“The process worked seamlessly, thanks to excellent preparation by Broadstone and meant we were able to move from buy-in to buy-out in under two months.
“This speed means less complexity for trustees and more time for our teams to focus on what matters: providing a smooth and high-quality experience for scheme members.”