Haag-Streit UK’s legacy defined benefit (DB) pension scheme has secured an £18m full-scheme buy-in with Aviva.

The transaction covers all 135 pensioners and 61 deferred members of the scheme, and all the scheme’s liabilities.

After initially approaching the market in July, the deal was completed in mid-October and was made possible following a “significant” contribution from the sponsor.

The scheme will now proceed to full buyout and wind-up.

Broadstone provided annuity broking services, as well as long-running actuarial, investment consultancy and administrative services to the trustee, while legal advice was provided by Ashurst.

Commenting on the transaction, scheme trustee chair, David Margetts, said that the sponsor had been keen to secure benefits and remove the scheme from its balance sheet for a while, but only if the contribution required was reasonable.

“When funds were on the table it was vital for the trustee to move quickly and ensure the scheme was attractive to the insurance market,” he continued.

“It is great news that we have secured benefits for our members at an affordable cost for the sponsor. It was a pleasure to work with Broadstone, Ashurst and Aviva to complete this transaction.

“A good team effort drove the transaction forward at a cracking pace despite strong demand in the bulk annuity market and I look forward to working through the final steps to wind up the scheme.”

Aviva deal manager, Paul Donnelly, commented: “We’re delighted to have been chosen to secure benefits for scheme members. All parties worked closely to complete the transaction in a short time frame, using Aviva’s new streamlined quotation service. Careful preparation by the trustees and their advisers supported the swift transaction.”

Broadstone senior actuarial director and scheme actuary, John Broome Saunders, added: “This transaction was initially discussed around a year ago and the intensive work completed by Broadstone and other advisers this year allowed us to present a buyout-ready scheme to insurers.

“We’re delighted that this work culminated in a price from Aviva that was within the sponsor’s budget and allowed the funding contribution to be made to complete the transaction.”

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