Unnamed pension scheme completes £111m BPA deal with M&G

Written by Adam Cadle

25/02/2025

An unnamed UK-based asset manager's pension scheme has completed a £111m bulk annuity purchase (BPA) transaction with M&G, securing the benefits of 466 pensioners and deferred members.

M&G’s wholly-owned subsidiary, the Prudential Assurance Company Limited, acted as the insuring entity.

The trustees, which included Independent Governance Group (IGG) as a professional trustee, were advised on the transaction by Isio as risk settlement adviser and investment consultant.

Hymans Robertson acted as scheme actuary to the trustee, CMS provided legal advice, and Broadstone acted as administrators.

The company received legal advice from Herbert Smith Freehills, while M&G received legal advice from Hogan Lovells.

M&G managing director of corporate risk solutions, Kerrigan Procter, said the deal was possible due to the “strong” alignment of interest between the sponsoring company, the trustees, and M&G while protecting members' security.

“It represents yet another important step in the delivery of M&G’s strategic objectives and showcases the team’s ability to work effectively and efficiently with clients to meet their derisking goals and deliver sustainable growth,” Procter added.

IGG chair of trustees, Roger Mattingly, said the trustees were “delighted” with the policy secured by M&G, which provided certainty to the scheme members and the scheme sponsor on the financing of member benefits into the future.

Adding to this, Isio partner, Karen Gainsford, said: “The careful and considered engagement of the trustees and the sponsoring company throughout the preparation phase meant that insurer proposals could be assessed quickly and objectively once received.”

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