Standard Life completes £880m buy-in with the Rolls-Royce & Bentley Pension Fund

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Bulk Purchase Annuity secures the benefits of c. 6,000 members

Standard Life, part of Phoenix Group, has concluded a £880 million Bulk Purchase Annuity (“BPA”) transaction with the Rolls-Royce & Bentley Pension Fund (“the Scheme”), which is sponsored by Bentley Motors Limited. This is a full scheme buy-in transaction covering c. 6,000 members of the Scheme.

The buy-in included novation of the Scheme’s existing longevity swap with Standard Life, originally executed in 2013 with Abbey Life (now part of Standard Life). The deal completed in June 2024.

The Trustee and Bentley Motors Limited worked collaboratively with Standard Life over an extended period to achieve the Scheme’s de-risking objectives and secure a full buy-in, significantly reducing the Scheme’s risks.

Isio was the lead transaction adviser to the Trustee, the investment adviser was Redington and legal advice was provided by Sackers. PwC and Travers Smith provided advice to the sponsor. Standard Life was advised by Eversheds Sutherland.

Kieran Mistry, Director of Defined Benefit Solutions at Standard Life, commented: "We are delighted to have collaborated with the Trustees, Bentley Motors Limited and their respective advisers to develop and deliver a solution that meets the specific needs and objectives of the Scheme. This transaction is another demonstration of our capabilities in novating longevity swaps, as well as our commitment to working with existing clients to support them in progressing their de-risking objectives."

Nick Johnson, Partner in Insurance and Risk Settlement at Isio, commented: “We’re proud to have delivered on this complex and innovative transaction to lock down significant risks for the Scheme, its members and the sponsor. We believe this buy-in meets both the present and future needs of all parties and is a very positive step for the Scheme. We have worked together on the de-risking journey from planning to execution, plus a stakeholder communication exercise. We are grateful to Standard Life for their support in crafting a tailored de-risking solution and working closely with all parties to ensure a smooth execution."

Kate Leigh, Trustee Director at Vidett and Trustee of the Scheme, commented: “This transaction represents a significant step in our ongoing de-risking strategy, ensuring long-term security for our members. Standard Life’s expertise was instrumental in navigating this stage of our journey and achieving our objectives. We look forward to continuing our work together to safeguard our members’ futures."

Kieran Mistry concluded: “The risk-transfer market remains busy and is showing no signs of slowing down following a record-breaking 2023, with 2024 volumes expected to exceed the £50bn mark. Insurance remains the primary de-risking solution for many trustees and sponsors, with preparation and early engagement vital to successfully navigating the busy market. We are continuing to see the benefit of working in partnership to achieve schemes’ unique objectives.”

ENDS

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