- Buy-in provides security for 6,600 defined benefit pension fund members
- Transaction removes risks associated with volatile pension fund liabilities
- Policy purchased by Trustee of the Fund as part of a de-risking journey
Standard Life, part of Phoenix Group, has completed a £1.8bn Bulk Purchase Annuity (“BPA”) transaction covering c.6,600 pensioner members of the Imperial Tobacco Pension Fund (“the Fund”), which is sponsored by Imperial Brands Plc.
The transaction demonstrates Standard Life’s credentials, commitment to and ambition in the BPA market.
This deal is part of the continued development and growth of Standard Life’s offering within the BPA space, which has seen it quote on ~90% of deals in the market by volume over the course of 2021, and also highlights Standard Life’s ability to work with pension scheme trustees and their advisers to meet their specific needs.
The Phoenix Bulk Purchase Annuity business was aligned under the Standard Life brand in October 2021, in recognition of Standard Life’s pensions and savings heritage and market expertise.
Hymans Robertson acted as lead advisers to the Trustee for this transaction – the first bulk annuity arrangement completed by the Fund. The Trustee received funding and investment advice from Willis Towers Watson and Isio respectively. Transaction legal advice was provided to the Fund by Osborne Clarke and CMS, whilst Eversheds Sutherland advised Standard Life.
Justin Grainger, Managing Director of Defined Benefit Solutions at Standard Life, said: “This transaction demonstrates the expertise within the Standard Life team and our continued commitment to the BPA market. We are looking forward to working with the Trustee of the Fund, having been selected as their partner in this transaction. This transaction helps the Trustee by protecting the members of the Fund and reducing the risks associated with holding pension scheme liabilities.
“We are committed to working with potential clients and their advisers to tailor the defined benefit solutions we offer, to work for all parties. The growth of our BPA business continues to fuel our investment into UK infrastructure and socially responsible projects that provide good returns as well as delivering for the communities that we serve.”
Helen Clatworthy, Chair of the Trustee of the Fund, said: “We are delighted to have completed this bulk annuity transaction with Standard Life. This buy-in is a major step in the Fund’s de-risking strategy and significantly improves the security of members’ benefits. Hymans Robertson’s expertise was instrumental in delivering this excellent result for the Fund, and we valued Standard Life’s willingness to work in partnership with us in meeting our objectives.”
Michael Abramson, Partner at Hymans Robertson, said: “Hymans Robertson are proud to have advised the Trustee on a highly bespoke buy-in transaction. Through close collaboration between all parties and Standard Life’s willingness to innovate with us, a fantastic outcome has been achieved for the Fund.”
For further information, photos, video content or interviews contact:
07974 604 323 / 0203 735 0942
Notes to editors
About Standard Life
- Standard Life is a brand that has been trusted to look after peoples’ life savings for nearly 200 years.
- Today it proudly serves millions of customers who come to Standard Life directly, through advisers and through their employers’ pension scheme.
- Standard Life is part of Phoenix Group, the largest long-term savings and retirement business in the UK. We’re proud to be building on nearly 200 years of Standard Life heritage together.
- Our products include a variety of Pensions, Bonds and Retirement options to suit people’s needs, helping our customers to invest and save for their future. We’re proud to offer a leading range of sustainable and responsible investment options.
- We support our customers on their journey to and through retirement with comprehensive, easy-to-understand guidance so they can invest in the right way for their needs, and plan a future they feel confident about.
- The value of investments can go down as well as up, and may be worth less than originally invested.
About Imperial Brands plc
Imperial Brands is a global consumer organisation and the fourth largest international tobacco company, operating across 120 markets. A constituent of the FTSE 100, its best-known brands include JPS, Lambert & Butler, Gauloises, West, Rizla, Golden Virginia and the vapour brand blu.