The Civil Aviation Authority Pension Scheme has completed a £1.6bn bulk annuity with Rothesay Life.

The transaction is the largest de-risking deal in 2015 to date and is the second largest buy-in ever secured by a pension scheme in the UK. It covers about two-thirds of the scheme's liabilities.

Aon Hewitt and Reed Smith advised the trustees on the deal, while Rothesay Life were advised by Wragge Lawrence Graham and Co.

Commenting on the transaction, CAAPS independent chair Joanna Matthews said the trustee is “delighted to have been able to achieve a significant reduction in the level of risk for the scheme and its members”.

“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. The transaction went extremely smoothly thanks to the very high quality of our data and processes.”

Aon Hewitt’s risk settlement group partner Paul Belok said: “We were also able to agree with Rothesay a mechanism which meant that the Trustee clearly understood how the premium would move whilst final details including legal documentation were being addressed, with these movements being closely mirrored by the value of relevant Scheme assets.”

Towers Watson senior consultant Shelly Beard said after a significant increase in activity levels has been seen due to the recent volailitiy in financial markets, driven by events in Greece.

She said European country’s financial crisis has “helped to improve affordability for some schemes, couples with some insurers seeking to aggressively build market share.”

“This has led to pensioner buy-ins achieving pricing which is significantly better than gilts and highlights the advantages of schemes being ready to transact,” she added.

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