M&G completes £309m buy-in transaction with the NSK’s UK pension scheme

Written by Adam Cadle

02/07/2024

M&G has completed a £309m bulk purchase annuity transaction for c.3,700 pensioner and deferred members of the NSK Pension Scheme, NSK’s UK pension scheme – a global manufacturer of bearings, automotive, and precision machinery products.

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

It is the third buy-in transaction completed by M&G since re-entering the bulk annuity market in September 2023, with total new business written now c.£930m.

Mercer acted as lead advisers for NSK Europe Limited on this transaction, with legal advice to the sponsor provided by Shoosmiths. The trustees were advised by Aon and CMS. Hogan Lovells provided legal advice to M&G.

Clive Bolton, life insurance CEO at M&G, said: “This transaction sees us take on the future pension obligations of the 3,700 pensioner and deferred members of NSK’s UK pension scheme, giving them the peace of mind that their pension is in the hands of a 175-year-old institution. It was made possible due to the strong collaboration and commitment between all parties involved and we are very pleased to have worked with both the sponsor and trustee to achieve this significant de-risking milestone.

“Since we announced our re-entry into this market last year, we have selectively participated in deals, having now written close to almost £1bn of business. We are committed to continuing to leverage our differentiated business model to help our clients achieve their goals and deliver sustainable growth.”

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