Aviva Secures £1.7 Billion Pensioner Buy-In for National Grid Electricity Group

Aviva Secures £1.7 Billion Pensioner Buy-In for National Grid Electricity Group

(IN BRIEF) Aviva has completed a £1.7 billion pensioner buy-in with the National Grid Electricity Group, part of the Electricity Supply Pension Scheme, ensuring benefits for 5,800 pensioner members. Finalized in October 2024, the transaction included transitioning an existing longevity swap from Zurich Assurance Ltd to Aviva. Aon acted as the transaction adviser, with legal support from DLA Piper and Mayer Brown. Aviva highlighted its commitment to sustainability through this deal, while the Group Trustee emphasized the added security and alignment with its de-risking strategy. Aon noted the importance of the 2018 longevity swap in facilitating this successful outcome.

(PRESS RELEASE) LONDON, 25-Nov-2024 — /EuropaWire/ — Aviva has finalized a £1.7 billion pensioner buy-in with the National Grid Electricity Group, part of the Electricity Supply Pension Scheme. Completed in October 2024, the transaction ensures long-term security for the benefits of 5,800 pensioner members. A significant component of the deal included transitioning the Group’s existing longevity swap with Zurich Assurance Ltd to Aviva, marking a major step in the Scheme’s de-risking strategy.

The Group was supported by Aon, which provided transaction advice encompassing actuarial, investment, and broking services. Legal counsel was offered by DLA Piper UK LLP on behalf of the Group Trustee, while Mayer Brown International LLP advised the Scheme Trustee.

Sean Rooney, Senior Deal Manager at Aviva, commented on the achievement:
“This transaction represents an important milestone in providing lasting security for pensioner members of the Group. The successful transition of the longevity swap demonstrates the collaboration and focus of all involved. We are particularly proud to support another signatory of AFS’s Sustainability Principles Charter, reflecting our ongoing commitment to responsible and sustainable practices.”

Stephen Yandle, Chair of the Group Trustee Board, shared his perspective:
“This buy-in is a key step in our de-risking journey, providing additional protection for our members while aligning with our strategic objectives. It has been a pleasure to work closely with Aon and DLA Piper on this initiative, and we look forward to our partnership with Aviva moving forward.”

Tom Scott, Partner at Aon, highlighted the broader significance of the transaction:
“This deal is a testament to the careful planning and strategic approach taken by the Group Trustee. By securing a longevity swap in 2018, the Group was well-positioned to hedge its longevity risk until the buy-in could be executed. The flexibility built into the longevity swap allowed for a seamless transition to Aviva, ensuring an excellent outcome for the Group and its members.”

This transaction not only underscores the importance of tailored de-risking strategies but also reinforces Aviva’s reputation for delivering innovative solutions in pension risk management. It stands as another example of Aviva’s dedication to safeguarding retirement security while adhering to sustainability principles.

About Zurich:

Zurich UK provides a suite of general insurance and life insurance products to retail and corporate customers. We supply personal, commercial and local authority insurance through a number of distribution channels, and offer a range of protection policies available online and through financial intermediaries for the retail market and via employee benefit consultants for the corporate market. Based in a number of locations across the UK – with large sites in Birmingham, Farnborough, Glasgow, London, Swindon and Whiteley – Zurich employs approximately 4,500 people in the UK. www.zurich.co.uk/.

Notes to editors:

• We are the UK’s leading diversified insurer and we operate in the UK, Ireland and Canada. We also have international investments in India and China.
• We help our 19.6 million (as at 31 August 2024) customers make the most out of life, plan for the future, and have the confidence that if things go wrong we’ll be there to put it right.
• We have been taking care of people for more than 325 years, in line with our purpose of being ‘with you today, for a better tomorrow’. In 2023, we paid £25.6 billion in claims and benefits to our customers.
• In 2021, we announced our ambition to become Net Zero by 2040, the first major insurance company in the world to do so. We are aiming to have Net Zero carbon emissions from Aviva’s operations and supply chain by 2030. While we are working towards our sustainability ambitions, we recognise that while we have control over Aviva’s operations and influence on our supply chain, when it comes to decarbonising the economy in which we operate and invest, Aviva is one part of a far larger global ecosystem. There are also limits to our ability to influence other organisations and governments. Nevertheless, we remain focused on the task and are committed to playing our part in the collective effort to enable the global transition. Find out more about our climate goals at at www.aviva.com/sustainability/climate and our sustainability ambition and action at www.aviva.com/sustainability.
• Aviva is a Living Wage, Living Pension and Living Hours employer and provides market-leading benefits for our people, including flexible working, paid carers leave and equal parental leave. Find out more at https://www.aviva.com/about-us/our-people/
• As at 30 June 2024, total Group assets under management at Aviva Group were £398 billion and our estimated Solvency II shareholder capital surplus as at 30 September 2024 was £7.6 billion. Our shares are listed on the London Stock Exchange and we are a member of the FTSE 100 index.
• For more details on what we do, our business and how we help our customers, visit www.aviva.com/about-us
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Media Contacts:

Aviva:
Shelley Kernaghan
Retirement and Annuities
Phone: +44 (0) 7800 692 266
Email: shelley.kernaghan@aviva.com

Zurich:
Matt West, Zurich UK, Media Relations Manager
07484517414
matt.west@uk.zurich.com

SOURCE: Aviva