We are pleased to announce the launch of our Value Share Bulk Purchase Annuity (“BPA”) proposition by completing a c.£500m transaction with a private Corporate Sponsor and its UK Pension Scheme, insuring c.3,200 pensioner and deferred members. The Value Share BPA, developed by M&G, offers an innovative alternative to a traditional buy-in. This structure allows Trustees to insure Scheme members in the same way as a regular buy-in transaction, continuing to place members’ security at the heart of the transaction. Uniquely, however, it also allows the Corporate Sponsor to share in the profit, and potential risks, generated from insuring their well-funded UK pension schemes. This enables the Trustees to achieve de-risking objectives and secure members’ benefits, whilst enabling the Corporate Sponsor to access the upside, and downside, that would be passed to an insurer in a traditional buy-in transaction. M&G re-entered the bulk annuity market in September 2023 and has since written circa £1.4 billion of new business, including this transaction. To support Clive Bolton, CEO of M&G Life, and M&G’s wider growth strategy, Kerrigan Procter will join as Managing Director of our Corporate Risk Solutions team in January 2025. For full details of this transaction please visit: https://lnkd.in/eFUVkyYa If you are a Trustee, Sponsor, adviser or interested party you can follow DB Solutions at M&G for more information.
