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The trustees of the Quest UK Pension Scheme have signed a £134m buy-in to secure the benefits of more than 440 members of the scheme.
The scheme sponsored by Swiss-owned flavours manufacturer Givaudan UK completed the transaction last month. Aviva previously insured the Givaudan UK Pension Plan in a 2021 deal.
Aon led the transaction process advising the trustees, with legal advice provided by HSF Kramer.
Full insurance has been the long-term target for a number of years, explained trustee chair Ian Messenger.
“This has now been made possible by the detailed preparation and strong collaboration across all workstreams led by Aon, with legal advice from HSF Kramer. The result is a very good outcome for all parties – members, the trustees and the company,” he added.
Christian Frener, head of global benefits at Givaudan International, said the firm had a joint working group with the trustees to achieve the buy-in.
He said: “Over recent years, we have systematically reduced risk through asset derisking and member options exercises. Following the £64m buy-in of a sister scheme in 2021, we are now in a position to have secured the vast majority of Givaudan’s UK defined benefit pension liabilities.”
Sean Rooney, senior deal manager at Aviva, said: “This second transaction with the sponsor reflects the strength of our ongoing relationship and we look forward to welcoming members to Aviva soon.”
Aon associate partner Jamil Merali said a multidisciplinary team made up of risk settlement, administration, investment and actuarial at Aon completed the transaction in an accelerated process.
“Aon’s investment team was able to move quickly to capture the attractive terms, while a collaborative joint working group enabled highly effective decision-making that has led to a positive outcome for all parties,” Merali said.
The Quest UK transaction announcement comes after Aviva recently revealed a £700m buy-in with engineering firm ABB that included a £620m in-specie transfer of UK and US corporate bonds and UK gilts.
In addition, earlier this year Aviva publicised a £249m buy-in with the Molins UK Pension Fund, a £270m buy-in with the RSP Section of the Morrisons Retirement Saver Plan, and a £4.8m buyout of the A Gomez Ltd Retirement Benefits Scheme.
