The Trinity Retirement Benefit Scheme has completed a £270m bulk purchase annuity (BPA) deal with M&G, securing the benefits of more than 3,200 members.
The deal was executed by Prudential Assurance Company Limited, M&G’s wholly owned subsidiary, and represented the scheme’s second and final buy-in, insuring all remaining members’ benefits.
The scheme was sponsored by Reach plc, and LCP acted as lead transaction adviser to the scheme, with DLA Piper providing legal advice to the trustee.
Aon acted as the scheme actuary, and Mercer provided covenant advice. Hymans Robertson and Slaughter and May advised Reach plc.
The trustee, Trinity Retirement Benefit Scheme Limited, selected M&G, citing its strong financial position and brand recognition, as well as the flexibility of its proposition.
This included a bespoke price lock designed to match the scheme’s existing assets and support for the continuation of member service standards following the transaction.
Capital Cranfield professional trustee and chair of the trustee, Susan Anyan, said the transaction followed an “intensive and highly collaborative process”.
“We are delighted to have been able to secure members’ benefits as a result of this transaction,” she continued.
“This successful outcome reflects the hard work, shared ambition and dedication of both the trustee and Reach plc, heavily supported throughout by a multidisciplinary team of expert advisers.”
Reach plc chief financial officer, Darren Fisher, described the deal as “an important milestone for the company and the scheme”.
“We have worked closely with the trustee of the scheme over several years to reach this point, and it is a testament to the collaborative approach taken by all parties that we have been able to achieve this positive outcome for both the scheme members and the company’s shareholders,” he added.
Meanwhile, M&G head of pension risk transfer origination and execution, Rosie Fantom, said the insurer was “delighted to partner with the trustee of the Trinity Retirement Benefit Scheme to secure the long-term financial security of its members”.
“This transaction underlines M&G’s position as a leading provider in the bulk annuity market, and we remain committed to supporting trustees and schemes in managing pension risk, backed by our strong financial foundation and proven expertise in execution,” she stated.
Echoing this, LCP principal, Ruth Ward, said she was “proud to have supported the trustee to achieve this significant milestone of insuring all scheme members”.
“A detailed preparation phase before seeking quotations facilitated a smooth broking process, giving all parties confidence that risks are being well-managed, and careful planning for how the scheme’s excellent member service will be maintained post transaction,” she added.
“This resulted in a highly competitive process and an excellent outcome for the scheme and its members.”
