Royal London announces BPA transaction with the Oxford Instruments Pension Scheme

Royal London, the UK's largest mutual life, pensions and investment provider, has secured a £213 million bulk purchase annuity (BPA) transaction with the Oxford Instruments Pension Scheme.

The Scheme is sponsored by Oxford Instruments plc, a leading provider of scientific technology tools and expertise to academic and commercial partners.

The transaction, finalised  in December, covers more than 1,600 members and marks Royal London's second largest external buy-in to date, after the £275m transaction completed with the Grant Thornton Pensions Fund in May of last year.

Aon acted as the risk transfer adviser and scheme actuary to the Trustee, with Norton Rose Fulbright providing legal advice, Schroders providing investment advice and with secretariat and governance support from Independent Governance Group. Royal London was advised by Mayer Brown.

Steve Warren, Chair of Trustees for the Oxford Instruments Pension Scheme said:

"The Trustee is delighted to have secured our members’ benefits via the bulk annuity policy with Royal London, achieving a fantastic outcome for the Scheme, the sponsor and its members. Many thanks to Royal London and our advisers for helping us to achieve this significant milestone."

Baljit Khatra, BPA Origination Lead at Royal London said:

"We are incredibly proud to have been chosen by the Trustee from a very strong field of insurers. We understand that our differentiated proposition as a mutual was a key deciding factor in what was a highly competitive process."

"It was fantastic working with the Trustee and their advisers, and we're committed to delivering with pace and proactivity as we support them and their members with a seamless, high-quality experience over the long term."

Leah Evans, Risk Settlement Partner at Aon said:

"We are pleased to have supported the Trustee throughout its de-risking journey. The focused preparation work carried out on member data, asset alignment and transaction decision making resulted in very strong insurer interest and ultimately culminated in a full Scheme bulk annuity transaction that was secured on attractive terms for the Scheme and its members. It was a pleasure working with the Trustee, Oxford Instruments, Royal London and the other advisers throughout."