M&G completes £286m buy-in transaction with Northern Bank Pension Scheme

Written by Adam Cadle

25/09/2023

M&G has completed a £286m bulk purchase annuity transaction for 1,917 members of the Northern Bank Pension Scheme.

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

The transaction was referenced in M&G’s half year results last week and is the pension scheme’s second with PAC, following a previous pensioner-only buy-in completed in 2015. It is the final step to insuring the scheme’s membership in full and also involved the successful transfer of an illiquid asset from the pension scheme.

Andrea Rossi, CEO at M&G said: “We are very pleased to have worked with the trustee of the Northern Bank Pension Scheme to achieve this significant de-risking milestone. The transaction demonstrates our ability to find flexible and innovative solutions for our clients.

“It also represents an important step in the delivery of our strategic objectives by leveraging our differentiated business model to drive sustainable growth.”

The trustee was advised on the transaction by WTW as risk settlement adviser, Hymans Robertson as investment consultants, WTW as scheme actuary and scheme secretary, and Sackers and Burges Salmon as legal advisers. CMS provided legal advice to Northern Bank Limited. Hogan Lovells provided legal advice to M&G.

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