Standard Life has completed a £880 million bulk purchase annuity transaction with the Rolls-Royce & Bentley Pension Fund, which is sponsored by Bentley Motors Limited.
This buy-in transaction covers around 6,000 members and was completed in June 2024. It includes an update to an existing longevity exchange with Standard Life. The Trustee, Bentley Motors, and Standard Life collaborated to decrease the scheme’s risks.
Isio advised the Trustee, Redington offered investment advice, and Sackers supplied legal counsel. PwC and Travers Smith advised Bentley Motors, and Eversheds Sutherland advised Standard Life.
Standard Life director of defined benefit solutions Kieran Mistry says: “We are delighted to have collaborated with the Trustees, Bentley Motors Limited and their respective advisers to develop and deliver a solution that meets the specific needs and objectives of the Scheme. This transaction is another demonstration of our capabilities in novating longevity swaps, as well as our commitment to working with existing clients to support them in progressing their de-risking objectives.
Isio partner in insurance and risk settlement Nick Johnson says: “We’re proud to have delivered on this complex and innovative transaction to lock down significant risks for the Scheme, its members and the sponsor. We believe this buy-in meets both the present and future needs of all parties and is a very positive step for the Scheme. We have worked together on the de-risking journey from planning to execution, plus a stakeholder communication exercise. We are grateful to Standard Life for their support in crafting a tailored de-risking solution and working closely with all parties to ensure a smooth execution. “
Vidett and Trustee of the Scheme trustee director Kate Leigh says: “This transaction represents a significant step in our ongoing de-risking strategy, ensuring long-term security for our members. Standard Life’s expertise was instrumental in navigating this stage of our journey and achieving our objectives. We look forward to continuing our work together to safeguard our members’ futures.”
Mistry added: “The risk-transfer market remains busy and is showing no signs of slowing down following a record-breaking 2023, with 2024 volumes expected to exceed the £50bn mark. Insurance remains the primary de-risking solution for many trustees and sponsors, with preparation and early engagement vital to successfully navigating the busy market. We are continuing to see the benefit of working in partnership to achieve schemes’ unique objectives.”