The prudential corporate pension solutions division of M&G has entered into a strategic partnership with Kuperstein Kapital and Cedar Insurance.
The move is intended to strengthen M&G’s value share bulk purchase annuity solution for the UK pension risk transfer market. This is a proposition that allows a sponsor to secure their members’ benefits in the same way as a regular buy-in, but still participate in upside in the longer term.
The partnership looks to provide clients with a flexible, fully regulated reinsurance ‘cell’ framework in Guernsey, and provide an efficient, cost-effective path for scheme sponsors and trustees who wish to access value share BPA without the need to build and run a new, regulated stand-alone captive.
Cedar Insurance was established as a regulated PCC insurance and reinsurance company in Guernsey 15 years ago and Kuperstein is a UK regulated financial advisory and insurance intermediary.
Kerrigan Procter, managing director for corporate pension solutions at M&G, says: “We’ve put this partnership in place with one clear aim; to make value share BPA as straightforward and convenient for pension scheme sponsors and trustees as possible.
“By offering an optional, flexible reinsurance cell framework, we’re removing additional complexities for those who want a simpler and more efficient route to accessing and running their value share BPA, while still supporting clients who choose to establish their own captive arrangement.”
From a sponsor perspective, a key appeal of M&G’s value share BPA is that risk is limited to a small upfront investment without affecting their broader balance sheet. From a trustee perspective, the structure resembles a traditional ‘vanilla’ BPA, while maintaining the same trustee experience without additional complexity.