Rolls-Royce & Bentley Pension Enters $1.1 Billion Annuity Buyout

The pension risk transfer with Standard Life will cover 6,000 employees.  



Standard Life
announced on Thursday that it finalized a deal to transfer 800 million pounds ($1.1 billion) of liabilities from the Rolls Royce & Bentley Pension in a full scheme buy-in transaction. The transfer will cover 6,000 beneficiaries of Bentley Motors Limited’s pension.  

With corporate pension funding surplus at an all-time high, plan sponsors are seeking to derisk their pensions and offload their liabilities to annuity providers. In the U.S. and in the U.K., pension risk transfer transactions are at an all-time high.  

“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,” Kieran Misty, director of defined benefits solutions at Standard Life in a statement. “Insurance remains the primary de-risking solution for many trustees and sponsors, with preparation and early engagement vital to successfully navigating the busy market.”  

The Bentley transaction is one of many jumbo deals to be announced this year. Earlier this year, Shell closed a $4.9 billion PRT with insurer Prudential, and Entergy entered into a $1.2 billion annuity buyout with MetLife.  

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Fitch Ratings in January upgraded its outlook for the U.K. insurance sector, the average funded ratio of 5,050 corporate pension schemes in the U.K. tracked by the Pension Protection Fund increased to 149.9% at the end of May, according to the PPF 7800 index. Of the same pension schemes tracked by the index, 4,574 were in a surplus position.  

Related Stories: 

Pension Risk Transfer Growth Fuels UK Insurance Rating 

Pension Risk Transfer Premiums Reach $14.6 Billion in Q1 

Shell Closes $4.9B Pension Risk Transfer With Prudential 

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