Aliaxis UK Defined Benefit Pension Scheme has completed a £36m bulk annuity deal with Just Retirement.

The medically underwritten deal was made to de-risk a proportion of the fund. The pension scheme underwent a comprehensive risk review resulting in the decision that managing down the overall longevity risk would be beneficial subject to suitable pricing.

As part of the process, the liability profile necessitated the collection of individual medical data to enable insurers to underwrite risk efficiently.

A competitive tender process was initiated by trustees and managed by Willis Towers Watson. Legal advice was provided by CMS Cameron McKenna LLP to trustees and MorganAsh supplied its medical date collection services.

Chairman of the trustees, Huw Davies said: “With just under 50 pensioner members to consider, it was vital that this buy-in not only provided demonstrable value but was also achieved in a smooth and timely manner. Willis Towers Watson led the negotiations in what proved to be a very competitive process – ultimately we chose Just Retirement as their pre-transaction medical underwriting represented the best solution for the Scheme.”

Aliaxis Group, group chief HR and communications officer Joerg Boder added: “Aliaxis are very pleased with the outcome of this process. Just Retirement have delivered a solution that has resulted in a significant reduction in the volatility of the Scheme’s funding position, and ultimately the Company’s balance sheet, providing a great outcome for members and the Company alike.”

Willis Towers Watson Specialist Bulk Annuity Advisor Suzanne Vaughan commented: “Prior to this transaction the Scheme’s finances were subject to a considerable concentration of risk depending on the life expectancy of a small number of pensioners. The transaction was structured such that this risk was significantly reduced through insuring a proportion of the benefits payable to the highest income members. The pricing achieved in this transaction reflects an extremely attractive market currently”.

Share Story: