Management Consulting
Aon
Full Credential Description
In 2019, Aon reported significant developments in the UK bulk annuity market, highlighting the challenges and opportunities faced by pension schemes. The market was characterized by an increasing demand for bulk annuities, with expectations that the total value of deals could exceed £40 billion. Aon noted that many pension schemes were improving their funding levels and that insurers were offering competitive pricing, which was crucial for schemes looking to de-risk. One of the key challenges identified was the need for pension schemes to conduct thorough preparatory work and clearly articulate their objectives to insurers. This was essential for securing the best possible deals in a competitive market. Aon emphasized the importance of being aware of market dynamics and the evolving appetite from sponsors and trustees to fully secure members' benefits, which presented both challenges and opportunities. To address these issues, Aon developed a new 'Streamlined Compass' approach specifically for smaller transactions. This initiative aimed to enhance insurer engagement and optimize pricing outcomes for pension schemes. The first half of 2019 saw the completion of the largest ever UK bulk annuity transaction, a £4.6 billion partial buyout of the Rolls-Royce UK Pension Fund, for which Aon served as the lead adviser to the trustees. This transaction underscored Aon's role in navigating complex negotiations and achieving significant results for their clients in the pension sector.