The UK's Watts Clift Holding Limited Retirement Benefits Scheme has agreed a £4m buy-in with Aviva, securing the benefits of all 51 members of the scheme. 

Despite its smaller size, the group said that strong insurer relationships and a well-structured approach enabled First Actuarial to run a multi-insurer tender process that achieved competitive pricing for the Watts Clift scheme.

The transaction was also one of the first to complete using a new feature of Aviva’s Clarity solution, which is intended to provide a fast-track process for schemes moving quickly to buyout.

First Actuarial, a Gallagher company, acted as risk transfer adviser, providing brokerage, project management and data support, while the trustees also received advice from Albion EBC, Atkin Pensions acting as scheme actuary, and Pension Partners Law Limited.

Commenting on the deal, chair of the trustees, Andrew McKinnon, said: “Thanks to the support and advice we received from all parties involved, we have helped the employer reduce the risks of running the scheme.

"We are delighted that First Actuarial was able to work with Aviva to deliver a cost-effective solution that meets the needs of a scheme of our size.”

First Actuarial associate partner and risk transfer consultant, Phil Kelly, also highlighted the ambitious timeline of the deal, noting that while the journey from buy-in to buyout can typically be slow and complex, Aviva Clarity’s fast-track capability accelerated the process "dramatically".

"For the Watts Clift scheme, buyout will be achieved in a matter of months instead of years," he stated. "For well-prepared schemes, this innovation represents a significant step forward in delivering member security quickly and efficiently.

“All parties worked well together. We worked closely with the administrator on the data side, and with Aviva to help them pilot their Aviva Clarity fast-track feature. We welcome this new development in the bulk annuity market.”

Adding to this, Aviva BPA senior deal manager, Andrew Shaposhnikov, said: “It’s been great to work on this transaction, particularly with such a well-prepared scheme.

"The Aviva Clarity solution and fast-track option is perfectly suited to these types of schemes, enabling us to provide a competitive price and move quickly and efficiently to secure member benefits in a significantly shorter timeframe than the traditional process.”

This article was first published on our sister website, Pensions Age.

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