Thursday 16 September 2021 2:54 pm

Aviva makes £320m bulk annuity deal with pension fund

Aviva has today announced the completion of a bulk purchase annuity deal, worth £320m, with the John Laing Pension Fund.

John Laing, a manager of infrastructure projects, is an active investor in large transport, social and environmental infrastructure projects and renewable energy projects globally.

The transaction marks the second buy-in between the two firms after the first one, worth £211m, was completed in 2008.

Aviva’s head of bulk purchase annuity, Jamie Cole, said the experience of the teams on both sides enabled a “smooth and efficient transaction.”

“The buy-in is good news for member security and is a result of positive and successful collaboration between all those involved,” said Mike Clare, chair of trustees at John Laing.

Clare said the trust had been determined to achieve “the right long-term de-risking for the Fund.”

The insurance giant said, in a statement, that it will insure the defined benefit pension liabilities for 1,850 current pensioners, and take responsibility for the investment and longevity risk of pensioners from the fund. 

Members, Aviva insisted, will not see a change in the amount of their benefits or the way they are paid.