Standard Life has completed a £1bn bulk purchase annuity transaction, covering 13,000 members of the WH Smith pension trust.
This sizeable transaction was completed in August and secures the benefits of members in this defined benefit scheme. LCP were the lead advisers for this transaction, while legal advice was provided by Mayer Brown International and CMS.
Standard Life, now part of the Phoenix Group, has had continued to expand its bulk purhase annuity business over the past year, completing a series of these transactions. It says this latest deal supports its commitment to sustainable investments, as the assets underlying the contract will be used to continue with a group-wide programme of investment into UK infrastructure and socially responsible projects. This includes areas such as renewable energy, infrastructure, and affordable homes.
Standard Life senior business development manager Rhian Littlewood says: “This is a significant deal for Standard Life and reinforces our ongoing commitment to the BPA market, supporting trustees with their de-risking requirements and helping ensure the security of members’ benefits.
“A collaborative approach between Standard Life and the trust’s advisers enabled the transaction to be completed more quickly than expected.”
Jeremy Stone, WH Smith Pension trustee chairman says:: “This represents the fulfilment of a strategy that the trustee and corporate sponsor started out on nearly 20 years ago.
“Our joint focus on de-risking and improving funding eventually led to the point where we were in a position to transact with Standard Life, to secure the benefits of all members. Our advisers (LCP, Mayer Brown, CMS and Redington) worked collaboratively with one another and with our in-house administration team to prepare thoroughly for this transaction. That meant we could respond quickly to an attractive price put forward by Standard Life. They in turn, were accommodating of our contractual needs, provided a valuable price lock in volatile markets and were easy to work with throughout the process.”