Standard Life is entering the Irish pension risk transfer (PRT) market, targeting both pensioner-only and deferred-member liabilities within the country’s €65bn defined benefit (DB) market.
The insurer said that by writing business across both active pensioners and deferred members, it will offer scheme trustees and advisers the structural flexibility required to execute full-scheme de-risking and final endgame strategies effectively.
While several insurers have participated in Ireland’s PRT market, the options available to pension funds seeking to transfer both pensioner-only and deferred-member liabilities are more limited.
Unlike the UK market, which has nine active participants, Ireland has only a few active participants led by Irish Life and New Ireland Assurance.
Standard Life’s entry brings additional capacity and choice for trustees and sponsoring employers considering full-scheme buyouts.
The strategy leverages Standard Life’s established Irish market presence alongside the capital backing, pricing infrastructure, and risk management framework of the wider Standard Life Group.
In August, Standard Life expanded its PRT business through a partnership with CVC Capital Partners, Prudential Financial Inc. (PFI), The Goldman Sachs Group and MS&AD Insurance Group Holdings, with a combined initial capital commitment of up to £2bn.
The commitment, which is expected to be drawn over five years, has allowed the insurer to focus on large UK pension funds, which account for the majority of the £1.1trn of assets held in UK DB schemes and are expected to represent a significant and growing share of the £350bn-£550bn of PRT transactions projected to come to market over the next decade.
Noelle Hawkshaw, head of BPA at Standard Life International, said: “Ireland’s defined benefit pension market is significant, but trustees and sponsoring employers have historically had a relatively small pool of insurers to choose from.
“We believe Standard Life has a valuable contribution to make in this market, and we’re ready to play our part in meeting growing demand for pension risk transfer solutions. By confirming full transaction readiness across both pensioner and deferred liabilities from day one, we‘re applying Standard Life’s deep retirement expertise to deliver essential market capacity, competitive pricing, and execution certainty.
“We look forward to partnering closely with trustees, sponsoring employers, and corporate consultants as they map out their de-risking journeys.”
