The Northern Bank Pension Scheme has completed a £286m bulk purchase annuity with M&G, securing the retirement benefits for 1,917 members.

The insuring entity for the deal was the Prudential Assurance Company (PAC),M&G’s wholly owned subsidiary.

It marked the pension scheme’s second bulk annuity deal with PAC, following a previous pensioner-only buy-in completed in 2015. It also follows on from a 2022 deal with Aviva, which secured the defined benefit (DB) pension liabilities for a total of 800 members.

WTW advised the trustee on the deal as risk settlement adviser, while Hymans Robertson acted as investment consultants, WTW as scheme actuary and scheme secretary, and Sackers and Burges Salmon as legal advisers.

Sponsoring employer Northern Bank, meanwhile, received legal advice from CMS, while M&G received legal advice from Hogan Lovells.

The buy-in, which also involved the transfer of an illiquid asset from the pension scheme, has been highlighted as the final step to insuring the scheme’s membership in full, "years ahead of expectations".

Commenting on the deal, Northern Bank Pension Scheme chair of trustee and Pan Trustees partner, Nick Chadha, stated: “The trustee is pleased to have partnered with M&G again to enhance the security of members’ benefits and mitigate most of the risks facing the scheme.

“We are delighted to have achieved a full buy-in several years ahead of expectations, demonstrating the importance of trustees having a good understanding of the de-risking markets and being agile in their approach.”

M&G chief executive, Andrea Rossi, added: “We are very pleased to have worked with the trustee of the Northern Bank Pension Scheme to achieve this significant de-risking milestone. The transaction demonstrates our ability to find flexible and innovative solutions for our clients.

“It also represents an important step in the delivery of our strategic objectives by leveraging our differentiated business model to drive sustainable growth.”

Adding to this, WTW managing director, Shelly Beard, stated: “It was a pleasure to work with the trustee, bank, M&G and the wider advisory team to achieve this significant transaction for the scheme.

“This was a complex transaction in which all parties collaborated to find solutions, which included unusual benefit features and the transfer of an illiquid asset.”

The deal also marked M&G's return to the bulk purchase annuity market more broadly, as this was the first time that the group completed bulk annuity transactions under the brand M&G.

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