DB Solutions at M&G

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 first of its kind, this structure allows Trustees to insure the Scheme members in exactly the same way as a traditional buy-in transaction while also allowing Corporate Sponsors to participate in the risk and reward generated from insuring their well-funded UK pension schemes. M&G has been working for several years to develop this proposition and expects that this proof of concept transaction will open the door for many more Sponsors to consider this solution as a viable endgame for their UK pension schemes. The Sponsor, Trustee and M&G have been working tirelessly on this ground-breaking transaction and the strong alignment of interest between all parties involved has enabled this successful outcome. You can read the full press release here https://ow.ly/uzya50UeCu2 In the coming weeks we will be sharing more about how our Value Share BPA solution can benefit Schemes and Sponsors.

Gurbani Swanni Leach, Solutions Director at M&G plc, recently shared her thoughts on DB schemes run-on options and the risks to consider, in the September/October issue of The Actuary magazine. https://lnkd.in/et3e8Xae

M&G plc has today announced its Half Year 2024 Results. You can hear more about our results from Group Chief Executive Officer, Andrea Rossi, below.

The Pension Protection Fund have reported an increase in aggregate surplus of the DB pension schemes in the PPF 7800 index, to £475.5bn in July this year, up from £432.8bn in July 2023. The number of schemes in surplus at the end of July 2024 was 4,589. Sponsors may have increasing concerns about existing contribution schedules leading to trapped surplus. At the same time Trustees may need improved covenant to continue to run on. Our Additional Funding Solution is designed to help with both of these issues, by providing additional covenant enhancement, without future contributions being locked away within the scheme. To find out more about M&G’s Additional Funding Solution and the benefits it can bring to schemes, click here: https://ow.ly/sJti50T8qnZ. To read the full update from The Pension Protection Fund, click here: https://ow.ly/IeU950T8qpB. This is only intended for advisers for pension schemes and/or scheme Trustees, Sponsors and Trusts. It’s not for retail customers or scheme policyholders. This is for information only and is not advice or a recommendation. #dbsolutions #dbpensionschemes

We’re delighted to announce today that Kerrigan Procter will be joining the business as Managing Director of our Corporate Risk Solutions business to drive M&G’s activity in the Bulk Purchase Annuity market and develop de-risking solutions for the corporate market. Kerrigan will join M&G in January and you can read more about the appointment here https://ow.ly/Rp4v50T3UuW

We’re delighted that Prudential Assurance Company, part of M&G, has recently been appointed to the National Local Government Pension Scheme (LGPS) Framework for Additional Voluntary Contributions (AVCs). The new National LGPS Framework is designed to help LGPS Funds and wider public sector pension schemes swiftly and easily access AVC services for their scheme members. M&G currently provides AVC schemes for more than 70 LGPS and more than 70,000 scheme members across the UK. Alastair Hogg #LGPS

In a landscape transformed by evolving market dynamics, heightened financial responsibilities and shifting regulations, pension scheme advisers, trustees and sponsors face unprecedented challenges. After exiting the market 8 years ago, in September 2023, we announced our successful re-entry into the bulk annuity market, and have since made three buy-in transactions totalling over £900million. Find out why we believe it was the right time to re-enter, and how our unique business model enables us to bring value to the de-risking market: https://ow.ly/cGsG50SG0ES #definedbenefitschemes #definedbenefitsolutions #bulkannuities

Is increased talk of scheme run-off a threat or an opportunity for insurers? Gurbani Swanni Leach, Solutions Director at M&G, answered this question at the recent Westminster and City Programmes #BulkAnnuitiesConference. Gurbani discussed a variety of topics including the DB market landscape, opportunity sets in the market, buy-in and buy-out pricing and alternatives to buy-out. All to help determine the threat or opportunity for insurers. You can access the recording of the presentation here - https://ow.ly/tC6f50SvJbw #definedbenefit #bulkannuities2024 #dbpensionschemes

In a recent article by Pensions & Investments, eight insurers active in the pension risk transfer market provided their opinions on what pension fund executives and their corporate sponsors should keep in mind, when looking to complete a buyout or buy-in. Included in the line-up is Alexa Mitterhuber, Solutions Director at M&G, who highlights the benefits behind M&G’s business model for the pension risk transfer market. Click here to read the full article: https://ow.ly/1YM550StNQ6

We are delighted to confirm that in March, M&G plc completed a £309m bulk purchase annuity transaction for around 3,700 pensioner and deferred members of the NSK Pension Scheme – a global manufacturer of bearings, automotive, and precision machinery products. There was a strong alignment of interest between the sponsoring Company, the Trustee and M&G to complete this transaction within the first quarter of the year, and an efficient and collaborative process from all parties involved was critical in hitting this deadline. This is the third buy-in transaction completed by M&G since re-entering the bulk annuity market in September 2023, with total new business written now at nearly £1bn. Clive Bolton, Life Insurance CEO said “It was made possible due to the strong collaboration and commitment between all parties involved and we are very pleased to have worked with the both the Sponsor and Trustee to achieve this significant de-risking milestone.” You can read the full press release here https://ow.ly/SIAy50SsUTO