Colthrop Board Mill Pension Scheme completes £23m buy-in with Aviva

Written by Callum Conway

30/01/2025

The Colthrop Board Mill Pension Scheme has completed a £23m buy-in with Aviva, securing the benefits of 69 deferred members and 152 pensioners.

First Actuarial, which led the transaction, worked closely with Aviva and legal advisers Osborne Clarke to complete the deal in a matter of weeks.

The consultancy firm already provided actuarial, investment, and administration services, and the trustees asked the firm's risk transfer team for guidance.

First Actuarial partner and head of risk transfer, Declan Keohane, said that while the trustees had been keen to help the employer de-risk, they were initially concerned that the buy-in would involve a substantial cash injection.

"We took the trustees through the options available. And with their agreement, we approached the market for potential insurers in August 2024," Keohane explained. "We received two quotations, which we discussed with the trustees."

Keohane praised First Actuarial, Osborne Clarke, and Aviva for their quick work completing "vital" background work, reviewing insurer terms and conditions, and carrying out know-your-customer and anti-laundering checks.

As a result, the scheme transacted the buy-in "only a few weeks" after First Actuarial had originally approached the market.

"Even with a slight delay towards the end because the sponsor needed additional information, the buy-in was completed by early September 2024," Keohane added.

The trustees' original concerns around affordability proved unfounded, as there was no need for a cash injection to meet the transaction price. It was a good result for everyone."

Osborne Clarke legal director, Lee Colgate, also commented on the deal: "We know that early preparation is the key to a successful risk transfer deal, and we worked closely with First Actuarial to ensure that the scheme was in the best position to transact.

"First Actuarial's project management and communication with all stakeholders played a large part in making this a smooth and efficient process. We are pleased to have helped the trustees to secure the scheme's liabilities with Aviva."

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