Target Information

Aviva has successfully completed a £134 million bulk purchase annuity (BPA) buy-in transaction with the Quest UK Pension Scheme, securing the benefits of over 440 members. This transaction, concluded in July 2025, is a testament to Aviva's commitment to provide long-term security for pension scheme members. The scheme is sponsored by Givaudan UK Limited, a global leader in the manufacturing of flavors and fragrances, based in Switzerland.

This recent undertaking marks the second collaboration between Aviva and Givaudan, the first having taken place in 2021 with the Givaudan UK Pension Plan, indicating a deepening relationship between the two entities.

Industry Overview in the UK

The UK pensions industry has seen a significant transformation over recent years, with an increasing shift towards securing member benefits through bulk purchase annuities. This transition is driven by a desire among pension schemes to mitigate risks associated with long-term obligations and uncertainties in financial markets. As firms face rising life expectancy and volatile investment environments, the demand for guaranteed income solutions has intensified.

The BPA market has responded positively, showing robust growth. Insurers have adapted their offerings and pricing structures to meet this demand while continuing to ensure competitive terms for pension schemes. This environment encourages collaboration between pension trustees and insurers, resulting in efficient deal processes and favorable outcomes for members.

Furthermore, regulatory changes have prompted pension schemes to focus more intently on risk management and securing member benefits, leading to a surge in buy-in transactions. Stakeholders are increasingly recognizing the importance of safeguarding member assets, resulting in a strengthened bond between pension plans and lifecycle insurers.

Overall, the UK pensions industry is evolving towards risk transfer solutions, with the BPA market poised to continue its growth trajectory as schemes seek certainty in an unpredictable financial climate.

Rationale Behind the Deal

The rationale behind this BPA buy-in transaction centers on the strategic goal of securing long-term benefits for the members of the Quest UK Pension Scheme. For the trustees and the sponsoring company, Givaudan UK Limited, full insurance of pension liabilities has long been a target. Through detailed preparation and teamwork, this objective has now been realized, ensuring peace of mind for all stakeholders involved.

The collaboration with Aon, who provided strategic advisory services, and the legal firm HSF Kramer, facilitated an accelerated and efficient process that enabled the scheme to seize favorable terms in the current market environment.

Investor Information

Aviva is one of the largest insurance firms in the UK and has a strong reputation for managing pension assets responsibly and effectively. The company's focus on risk management and securing guaranteed income for pensioners highlights its commitment to meeting the long-term financial needs of its clients.

With a deep understanding of the pensions landscape and a proven track record of executing complex transactions, Aviva's expertise positions it favorably within the bulk purchase annuity market. The firm's resources and infrastructure further enhance its ability to execute efficient and beneficial pension buy-ins, ensuring the interests of members are prioritized.

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The recent BPA buy-in transaction between Aviva and Givaudan UK Limited is perceived as a solid investment for all parties involved. By securing the pension benefits of scheme members, both the trustees and the company have taken prudent steps towards risk mitigation and long-term financial stability. This move reflects a forward-thinking approach in the face of potential market uncertainties.

Investing in a BPA provides an assurance that members' benefits are secured, reducing the operational and financial risks typically associated with managing a defined benefit pension scheme. This transaction reinforces the value of such products in the evolving landscape of the UK pensions sector.

The existing relationship between Aviva and Givaudan is also a strategic advantage, as it enhances trust and streamlines future collaborations, making subsequent transactions smoother and potentially more beneficial for all stakeholders.

In conclusion, the deal showcases a commitment to safeguarding member interests while enveloping the pension scheme within a reliable financial framework. As the market continues to grow, such strategic moves highlight the potential for further successful investments in this area.

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