Rotork pension scheme agrees £70m buy-in with Aviva

Written by Callum Conway

22/10/2024

The trustee of the Rotork Pension and Life Assurance Scheme has agreed a £70m buy-in transaction with Aviva, covering the pension benefits for 19 current pensioners and dependants and 322 deferred members.

LCP acted as lead adviser for the transaction, using their streamlined buy-in service, while Barnett Waddingham acted as scheme actuary and investment adviser, and Gowling WLG provided legal advice.

The buy-in is the second transaction the scheme has agreed with Aviva, following an £80m pensioner buy-in completed last year, and means that the scheme is now fully insured.

This also marked the 96th transaction completed using LCP’s service, which provides schemes with a streamlined broking process with pre-agreed contract, taking the total amount insured using the service to more than £4bn.

Trustee board chair and Zedra Governance Limited client director, Melanie Cusack, said the deal was completed “much sooner than expected" given the support from advisers.

“This buy-in policy further increases the security of all our members’ benefits,” she added.

LCP partner, Tim Gilbert, said the deal also highlighted the “high demand from schemes approaching the buy-in market.”

“Insurers are continuing to focus on smaller transactions that they know will be efficient with a high likelihood of successfully transacting," he added.

Aviva senior deal manager, Toby Holmes, added: “We are extremely pleased to have worked with the trustees and their advisers again. All parties worked efficiently to help the scheme take the next step on its journey plan.

“This is our 8th transaction this year completed through LCP’s streamlined buy-in service, and it continues to deliver well-prepared schemes and efficient execution.”

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