Scottish Widows enters bulk annuity market with £400m buy-in

Jeff Sayers, Managing Director of Bulk Annuities and Investment Strategy at Scottish Widows, said:

“I am delighted to announce Scottish Widows' entrance into the bulk annuity market. The execution of this £400m buy-in demonstrates the strength of our offering to help trustees and scheme sponsors achieve their de-risking aims.

“We have built a strong capability in this growing market and believe, in conjunction with the wider Lloyds Banking Group, we offer a compelling proposition – a trusted brand, financial strength, investment and administration capabilities, and an experienced team of industry experts.”

The transaction covers around two thirds of the pension Scheme’s liabilities in respect of 4000 individuals and was executed with a premium payment process, designed specifically to accommodate the pension scheme’s disinvestment timetable, whilst minimising execution risk.  

Emma Watkins, Director of Bulk Annuities at Scottish Widows, said:

“This transaction represents a significant milestone for Scottish Widows and we are thrilled to have been chosen by the Trustees of the Wiggins Teape Pension Scheme on this significant buy-in arrangement, and look forward to becoming a long term de-risking partner.

“We have worked closely with the Trustees and their advisers to tailor the arrangement to meet the Scheme's needs. Through the provision of an innovative mechanism, we have been able to ensure premium certainty for the Scheme over an extended execution period. Furthermore, our pricing approach and use of up-to-date Scheme member information in the run-up to the transaction date extends pricing certainty post-transaction and ensures efficient implementation of the policy.”