Insurance firm Rothesay Life has completed a £1.6bn bulk annuity deal with the Civil Aviation Authority Pensions Scheme (CAAPS), the second largest buy-in ever secured by a UK pension scheme.
The arrangement is also the largest de-risking transaction completed so far this year. Rothesay Life has now written £3.4bn of new business year-to-date in 2015.
Tom Pearce, Rothesay Life managing director, said the deal was “further evidence of the increasing maturity of the bulk annuity market and an endorsement of Rothesay Life as a leading player in it”.
“Our strong capital position and cautious approach to risk management leaves us well positioned to take advantage of growth opportunities,” said Pearce.
CAAPS has assets of £7.25bn, provides benefits to more than 14,000 members and is overseen by a corporate trustee.
The trustees were advised by Aon Hewitt and Reed Smith, while Rothesay Life was advised by Wragge Lawrence Graham and Co.
Joanna Matthews, independent chair of the CAAPS, said the trustee was “delighted to have been able to achieve a significant reduction in the level of risk for the scheme and its members as a result of this transaction”.
Matthews added: “The staff of CAAPS, our advisers and Rothesay Life have collaborated very professionally and in a highly efficient manner to achieve this excellent outcome for the scheme.”