Aviva has compled a £64m bulk annuity deal with the Givaudan UK pension plan.
Givaudan is a multinational manufacturer based in Switzerland that develops fragrances and tastes for the cosmetic and food industries.
Aviva will insure the defined benefit pension liabilities for 277 members, taking responsibility for the investment and longevity risk of these members from the plan. The process to select an insurer and negotiate terms was led by Aon using its Pathway service.
This comes as many in the industry are expecting to see a continued rise in the number of bulk annuity deals made – across both smaller and larger DB schemes. This is supported by a more favourable funding situation for DB schemes looking to reduce their ongoing liabilities.
Robin Storey, chair of trustees for the Givaudan UK Pension Plan, says: “The long term protection of our members’ benefits has been secured through this buy-in transaction with Aviva.
“The detailed preparation and strong collaboration across risk settlement and investment workstreams led by Aon, actuarial advice from Willis Towers Watson and legal advice from Eversheds Sutherland and Travers Smith, made this possible.”
Michael Walker, associate partner at Aon, said: “This transaction with the Givaudan UK Pension Plan was able to complete smoothly by the use of Aon’s Pathway service which is specifically designed for schemes of this size.
“The combination of consistently positive investment returns delivered by Aon’s Fiduciary Management investment platform, strong market engagement through Pathway and comprehensive transaction preparation by all advisers, resulted in a highly attractive outcome for all parties.”