An unnamed UK defined benefit (DB) pension scheme in the transport sector has completed a £9.7m buy-in with Aviva, securing the benefits of 100 members.

Quantum Advisory acted as lead transaction adviser on the deal, while Stephenson Harwood provided legal advice.

The independent chair of trustees was PAN Trustees deputy chair, Lynne Stewart-Brindle.

The transaction forms part of the scheme’s long-term strategy and is intended to provide greater security for members’ benefits while supporting the trustees and sponsoring employer in meeting their endgame objectives.

Quantum Advisory principal consultant, Chris Mason, commented on the deal: “The market remains highly competitive and we continue to see attractive opportunities for smaller schemes that are well prepared and have a clear strategy.

“There can sometimes be a perception that insurers are focused solely on the largest transactions, but our experience is that smaller schemes can achieve excellent outcomes when they enter the market in the right way.”

“Trustees who understand their objectives, have high-quality data and take advice in the process from specialists in small scheme deals, like Quantum Advisory, are often in a much stronger position to secure a successful transaction,” he continued.

“This was certainly the case for our client in the transport sector, who wanted to buy-in and had been working towards it.

“With the right approach and support, smaller schemes like our client’s can achieve their long-term goals.”

Quantum Advisory noted that it had advised on a number of buy-ins for small and medium-sized pension schemes and continued to support trustees and sponsoring employers through their de-risking and endgame journeys.

Mason added that smaller schemes were increasingly moving towards endgame risk transfer transactions as insurer appetite and market competition remained supportive.

“Every scheme is different, but what remains consistent is the importance of planning ahead,” he stressed.

“Risk transfer is not simply about completing a transaction; it’s about ensuring trustees are in the strongest possible position to make informed decisions at the right time.

“We’re continuing to see encouraging opportunities for smaller schemes and expect that to remain the case as the market develops.”

This article was first published by our sister title, Pensions Age.

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