Huntsman Pension Scheme in £205m buy-in deal with M&G

The Huntsman Pension Scheme has completed a £205m (€236m) buy-in transaction with M&G, securing the pension fund benefits of more than 660 retirees and deferred pensioners.

The insuring entity is The Prudential Assurance Company (PAC), M&G’s wholly-owned subsidiary offering life and pensions solutions.

M&G, the trustee and their advisers completed the transaction within the first quarter of the year, and a collaborative process from all parties was critical in reaching this milestone with M&G’s premium locked to the pension fund’s assets comprising Gilts and credit over that period.

The trustee was advised on the transaction by WTW as risk transfer adviser, Squire Patton Boggs as legal adviser and Mercer as investment consultant. Eversheds Sutherland provided legal advice to M&G.

John Shipman, chair of the scheme’s trustees, said the buy-in deal helps to provide greater certainty to members about the security of their benefits and represents a pivotal moment in the pension fund’s de-risking journey.

Kerrigan Procter, managing director of corporate risk solutions at M&G, added that the transaction sees PAC take on the future pension obligations of the fund’s members, giving them peace of mind that their pensions are in the hands of a 177-year-old institution that “has been looking after pensioners and savers for generations”.

Momentum for smaller schemes

While the large deals over £1bn have become a more common occurrence, there has also been significant momentum building over 2025 for smaller pension funds.

Last year transactions of less than £100m made up nearly 80% of all transactions in this segment, with Just Group (120) and Aviva (52) completing the most transactions under £100m.

Just this week, there were three transactions below the £100m mark, which included a £40m transaction between the Institution of Mechanical Engineers Pension Scheme and Pension Insurance Corporation (PIC), insuring pension benefits of 200 scheme members.

A £11m buy-in deal between DAC Beachcroft and Aviva, which secured benefits for all 15 deferred members and 25 pensioner members of the DAC Retirement Benefits Scheme.

Another £4m full scheme buy-in transaction between the Apostolic Church Staff Pension Scheme and K3 Advisory, which secured the benefits of 51 pensioners and 12 deferred members.

With Brookfield confirming entry into the market earlier this year and a number of established bulk purchase annuity (BPA) insurers focusing on smaller schemes, this momentum is expected to continue to build over the year.

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