Kingfisher Pension Scheme, a defined benefit pension fund of the owner of retail brands including B&Q and Screwfix, has completed a £900m (€1.01bn) bulk purchase annuity transaction with Aviva.
The deal insures the investment and longevity risk associated with over 8,000 of the £3.7bn scheme’s members.
It is Kingfisher’s third and largest buy-in, following a £228m medically underwritten transaction backed by Legal & General in 2017, and a £200m deal with Pension Insurance Corporation in 2018.
John Baines, head of bulk annuities at Aon, said the new deal demonstrated the value of developing a clear strategy.
“The tried-and-tested decision-making framework allowed them to use their previous experience to once again benefit scheme members,” he added.
“The first half of 2021 saw a relatively modest level of activity in the bulk annuity market, which gave rise to an opportunity for the trustee to move quickly to capture excellent market pricing.”
The deal was completed this month.
Jamie Cole, head of bulk purchase annuity origination at Aviva, said: “Throughout the process we’ve been working to an ambitious timeline and thanks to the expertise and collaboration of all parties we completed the transaction within three weeks of exclusivity.”
Aon led the process to secure the insurer and negotiate terms. Actuarial advice was provided to the trustee by Hymans Robertson and legal advice by Eversheds Sutherland.
The pension scheme is aiming to gradually de-risk its portfolio so that by 2030 it consists entirely of matching assets.