The London Stock Exchange (LSE) Group Pension Scheme has completed a £335m bulk purchase annuity deal with Standard Life, covering 1,740 members across the LSE and London Clearing House sections of the scheme.

Aon acted as the lead adviser on the buy-in, which completed in May 2023, while legal advice was provided to the trustees by Eversheds Sutherland and investment advice by Redington. Standard Life, meanwhile, were advised by Herbert Smith Freehills and ITM.

LSE defined benefit (DB) pensions director, Georgina Wallis, highlighted the deal as a “significant milestone” in the group’s long-term pension strategy.

“We are delighted to have achieved this result for the scheme which was a product of the collective efforts of the trustee, London Stock Exchange Group, their advisers and Standard Life,” she continued.

Adding to this, chair of the trustee and Bestrustees trustee executive, Catherine Redmond, stated: “This transaction provides greater certainty for our members and reduces the risks in the scheme.

“We appreciate the support from the sponsor throughout the scheme’s journey as well as the guidance from our advisers in taking this next step on our de-risking journey, and helping us achieve our long-term goal of being fully insured.”

A number of the advisers on the transaction also emphasised the importance of collaboration in the deal, particularly given the increased demand in the bulk annuity market.

Aon risk settlement group partner, Charlotte Quarmby, for instance, highlighted the transaction as demonstration that, despite a busy market, bespoke solutions can still be developed to meet client needs.

“By carefully engaging with insurers and having clarity from the trustee on what was needed, we were able to help the scheme achieve an attractive outcome with Standard Life and to meet their objectives," Quarmby stated.

"In our role as specialist adviser we helped the two Sections achieve a better result by taking them to market together - which allowed the trustee to access better pricing and terms due to the larger size.”

This sentiment was echoed by Redington managing director, Mohamed Fazal, who said: “In an increasingly competitive market, this is the perfect example of how careful planning based around a shared vision can enable schemes to continue accessing attractive de-risking opportunities."

Standard Life senior business development manager, Rhian Littlewood, added: "This transaction was made possible thanks to the exceptional collaboration and engagement between all parties involved, working together to identify the solutions that best matched the specific de-risking requirements of the scheme.

"Increased funding levels meant that the scheme was well positioned to explore how to reduce its risks through a bulk purchase annuity deal.

"Through this collective effort, the scheme was able to seize an ideal market opportunity, resulting in a smooth and efficient process, and we are pleased to have been part of this solution.”

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