The benefits of over 8,000 pensioner members are insured through this transaction, with Aviva taking over the investment and longevity risks associated with their liabilities.
The British multinational retailing company manages brands including B&Q and Screwfix.
This transaction follows a £209m buy-in with Pension Insurance Corporation in 2018, and a £230m medically-underwritten buy-in with Legal & General in 2016.
Trustee chairman Clive Gilchrist, who is also trustee executive at BESTrustees, said: “This is great news for our members. The trustee, with support from the Kingfisher pension executive team and our external advisers, has successfully completed a third buy-in and secured these existing pensioner members’ benefits through Aviva Life & Pensions UK, an insurer which has strong financial credentials and a track record of excellent customer service.”
It is Aviva’s fifth announced transaction of the year, following a £64m transaction with Givaudan in February, and a £190m deal with a Pfizer-sponsored pension scheme in April.
Head of bulk purchase origination Jamie Cole commented: “Kingfisher is a leading multinational retailer with a strong presence in the UK and we’re proud to have helped the trustees of the pension scheme to secure benefits for their members.
“Throughout the process we’ve been working to an ambitious timeline and thanks to the expertise and collaboration of all parties we completed the transaction within three weeks of exclusivity.”
The transaction was advised on by Aon, which helped with the selection of the insurer and the negotiation of terms. It also received actuarial advice from Hymans Robertson and legal advice from Eversheds Sutherland. Aviva was advised by DLA Piper.
Aon head of bulk annuities John Baines said: “This third, and largest, buy-in transaction in which Aon has worked with the Kingfisher trustee really demonstrates the value of developing a clear strategy. The tried-and-tested decision-making framework allowed them to use their previous experience to once again benefit scheme members.
“The first half of 2021 saw a relatively modest level of activity in the bulk annuity market, which gave rise to an opportunity for the trustee to move quickly to capture excellent market pricing.”
Eversheds Sutherland partner Simon Daniel added: “The trustee had clear objectives for this transaction and was very well prepared. Eversheds Sutherland is delighted to have been part of the team that delivered it for the scheme.
“Aviva is a new partner for the trustee and it was great to work with its advisers to put in place contractual arrangements that meet all parties’ requirements and, most importantly, provide further benefit security for members.”
Around £5.4bn of bulk annuities have so far been confirmed for 2021.
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