Aviva Executes Major £160m Annuity Buy-In with the Scottish Widows Pension Fund

Aviva Completes £160 Million Pension Buy-In with SG Pension Fund

London, United Kingdom – september 24, 2025 – Aviva has announced the successful completion of a significant £160 million bulk purchase annuity (BPA) transaction with the SG Pension Fund. The agreement, finalized in August 2025, directly safeguards the retirement benefits of more than 1,900 scheme members, providing increased financial security.

Securing Pensions and Strengthening Relationships

This transaction represents a significant step in bolstering Aviva’s established partnership with both the Trustees and the sponsoring organization, portakabin Limited. Portakabin, a leading innovator in modular building solutions for sectors like education, healthcare, and infrastructure, previously integrated its defined contribution scheme into the Aviva Master Trust in 2024. This extended collaboration underscores Aviva’s commitment to extensive pension solutions.

A key element of the transaction is its positive impact on member experience. Scheme participants will retain access to their Additional Voluntary Contributions (AVCs) as a primary source for tax-free cash,utilizing Aviva’s integrated DB&C policy linked to the Aviva Master trust DC proposition.This ensures continued financial flexibility for members.

Expert Advisory Support

The Trustees benefited from expert guidance throughout the process, with Aon leading the advisory work.Legal counsel was supplied by the firm of Gowling. Their combined expertise facilitated a smooth and efficient completion of the complex transaction.

Sean Rooney, Senior BPA Deal Manager at Aviva, commented: “This transaction was a pleasure to work on and showcases our longstanding partnership with Portakabin UK in securing members’ pension benefits. We consistently strive to deliver customized solutions that effectively address the unique needs of our clients and are pleased to welcome members to Aviva.”

Chris martin, Chair of the Joint Working Group from Autonomous Governance Group, stated: “We are delighted to have further enhanced the security of members’ benefits, which has remained a paramount objective for both the Trustees and the Company. The collaborative spirit between the Trustee, the sponsor, Aon’s advisory team, and Gowling was instrumental in achieving this positive outcome for Fund members.”

Trustee and Aon Perspectives

Tony Sharp, Chair of Trustees, added: “We were pleased to work alongside the sponsor and our advisors through the Joint Working Group to achieve this excellent result for our Fund members. The Trustee remains dedicated to supporting the Fund in the years ahead and looks forward to continued collaboration with the Aviva team.”

Matt Cook, Associate Partner at Aon, noted: “This transaction exemplifies the benefits of proactive governance and a resolute focus on objectives in navigating the insurance market. An integrated Aon team, encompassing risk settlement, investment, and actuarial expertise, ensured the transaction’s efficient completion and alignment with all stakeholder objectives.”

Did You No? According to the Pension Protection Fund (PPF), approximately £15.3 billion worth of buy-ins and buyouts were completed in the first half of 2024, demonstrating a strong market trend.

Transaction Element	Details
Transaction Value	£160 Million
Number of Members Secured	1,900+
Insurer	Aviva
scheme Sponsor	Portakabin Limited
Advisory Firm	Aon
Legal Counsel	Gowling

Looking Ahead: The Future of Pension Risk Transfer

The completion of this buy-in signifies a broader trend in the pension landscape, where companies and pension schemes are increasingly turning to insurance solutions to manage and mitigate risks. This proactive approach provides greater certainty for members and helps ensure the long-term sustainability of pension plans.

Pro Tip: Pension scheme trustees should regularly review their risk transfer strategies and explore the potential benefits of buy-in and buyout transactions.

Understanding bulk Purchase Annuities (BPAs)

A Bulk purchase Annuity is an insurance policy purchased by a pension scheme to transfer the risk of paying future pension benefits to an insurance company. In exchange for a premium, the insurer assumes responsibility for paying the specified benefits to the scheme members for the rest of their lives. BPAs are a key tool in de-risking pension schemes and providing added security for members. The market for BPAs has been especially robust in recent years, driven by factors such as increasing longevity and regulatory pressures on schemes.

The Importance of Pension Scheme Security

Ensuring the security of pension schemes is crucial for maintaining trust and confidence in the retirement system. Buy-in transactions, like the one announced by Aviva, play a vital role in protecting members’ benefits from potential risks such as sponsor insolvency or adverse market conditions. This commitment to security is paramount in a world where individuals are increasingly responsible for managing their own retirement savings.

Frequently Asked Questions About Pension Buy-Ins

What is a pension buy-in?

A pension buy-in is a transaction where a pension scheme purchases an annuity from an insurance company, securing the benefits for some or all of its members.

How does a bulk purchase annuity work?

A BPA involves a pension scheme paying a premium to an insurer in exchange for the insurer taking on the responsibility of paying the agreed-upon pension benefits to members.

What are the benefits of a pension buy-in for scheme members?

Buy-ins provide increased security for pension benefits, protecting them from risks such as sponsor insolvency and market volatility.

What role do advisors play in a pension buy-in transaction?

Advisors like Aon provide expertise in navigating the complex process of a buy-in, ensuring the best possible outcome for the scheme and its members.

Is a pension buy-in a common practice?

Pension buy-ins are becoming increasingly common as schemes seek to de-risk and improve member security.

What is the difference between a buy-in and a buyout?

A buy-in secures benefits but the scheme remains in existence. A buyout transfers all assets and liabilities to the insurer, winding up the scheme.

What are AVCs and will they be affected?

Additional voluntary Contributions are a method for members to contribute more towards their pension schemes. This transaction allows members to continue to access these funds.

what are your thoughts on the rising trend of pension buy-ins? Do you believe these transactions adequately protect the retirement savings of individuals?

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What is the primary risk transferred from the Scottish Widows Pension Fund to Aviva through this annuity buy-in?

Aviva Completes £160m Annuity Buy-In with Scottish Widows Pension Fund

Deal Details & Transaction Overview

Aviva has finalized a important £160 million annuity buy-in transaction with the Scottish Widows Pension Fund.This deal secures the retirement benefits for approximately 650 members of the scheme, effectively transferring longevity risk from the pension fund to Aviva. The transaction was completed on September 23, 2025, and represents a significant move in the growing market for annuity buy-ins and pension risk transfer.

* Transaction Size: £160 million

* Number of Members: Approximately 650

* Insurer: Aviva

* Pension Scheme: Scottish Widows Pension Fund

* Type of Transaction: Annuity Buy-In – meaning the pension scheme purchases annuities from aviva to match the benefits payable to its members.

Understanding Annuity Buy-Ins & Pension risk Transfer

Annuity buy-ins are increasingly popular tools for UK pension schemes looking to de-risk their balance sheets. They involve a pension scheme purchasing annuities from an insurance company like Aviva. This effectively transfers the duty for paying future pension benefits to the insurer.

Here’s a breakdown of the key benefits:

* Longevity Risk Mitigation: Pension schemes face the risk that members live longer then anticipated, requiring them to pay out benefits for a longer period. Annuity buy-ins eliminate this risk.

* Reduced Scheme Liabilities: By transferring assets and liabilities,the scheme’s overall financial burden is reduced.

* Improved Funding Position: A buy-in can improve the scheme’s funding level, potentially reducing future contributions required from sponsoring employers.

* Regulatory Compliance: Helps schemes meet regulatory requirements related to risk management and funding.

Related terms include pension de-risking,bulk annuity transactions,and defined benefit (DB) scheme solutions.

Key Drivers Behind the Increasing Trend

Several factors are driving the surge in annuity buy-in activity:

1. Rising Interest Rates: Higher interest rates make annuity pricing more attractive for pension schemes.Insurers can offer better terms when yields are higher.
2. Regulatory pressure: The Pensions Regulator (TPR) is increasingly focused on schemes demonstrating robust risk management practices, encouraging de-risking strategies.
3. Improved Insurer Capacity: Insurers like Aviva, Legal & General, and Rothesay life have increased their capacity to take on pension scheme liabilities.
4. Scheme Maturity: Many DB schemes are maturing, with a growing proportion of members reaching retirement age, making them more suitable for buy-in transactions.

Aviva’s Role in the Pension Risk Transfer Market

Aviva is a leading provider of pension risk transfer solutions in the UK. The company has completed numerous buy-in and buyout transactions in recent years, demonstrating its expertise and financial strength.

* Market Share: Aviva consistently holds a significant share of the UK annuity buy-in market.

* Specialist Teams: Aviva employs dedicated teams specializing in structuring and executing complex pension transactions.

* Solvency Strength: Aviva’s strong solvency position allows it to confidently take on substantial pension liabilities.

Scottish Widows Pension Fund – Strategic Rationale

For the Scottish Widows Pension Fund, this buy-in represents a strategic step towards securing the benefits of its members and reducing the scheme’s exposure to longevity risk. While specific details of the fund’s overall de-risking strategy haven’t been publicly disclosed, this transaction aligns with the broader trend of DB schemes proactively managing their risks. The fund likely assessed the current market conditions and steadfast that a buy-in offered a favorable chance to offload a portion of its liabilities.

Impact on Pension Scheme Members

The annuity buy-in provides greater security for the 650 members of the Scottish Widows Pension Fund. Their benefits are now backed by the financial strength of Aviva, reducing the risk of any future shortfall.Members will continue to receive their pensions as usual, with Aviva assuming responsibility for making payments. There should be no noticeable change to the members’ pension income.

Future Outlook for Annuity Buy-Ins

The market for annuity buy-ins is expected to remain strong in the coming years. Experts predict continued growth, driven by the factors mentioned above.

* Market Forecasts: Industry analysts anticipate that the volume of annuity buy-ins could exceed £20 billion in 2025 and beyond.

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