Management Consulting
Aon
Full Credential Description
Aon acted as the lead adviser to the Balfour Beatty Pension Fund on a significant £1.7 billion longevity transaction with SCOR and Zurich Assurance Ltd. The primary challenge faced by the fund was the risk associated with pensioner members and their dependants living longer than anticipated, which could lead to rising costs. To address this issue, Aon designed a transaction structure that provided the funds Trustee with future flexibility, control, and security. This was achieved while minimizing costs, governance, and operational burdens through Zurichs pass-through solution, which established mutual credit risk exposure between the Trustee and the reinsurer. Aons risk settlement team not only advised on the design and structure of the transaction but also negotiated the intermediary insurance terms with Zurich and facilitated the reinsurance broking process. The successful execution of this transaction marks a significant step in the funds de-risking journey, showcasing the vibrant insurance and reinsurance market that offers attractive pricing and terms for pension schemes.