Management Consulting

Pension Insurance Corporation plc (PIC) successfully concluded a £6.5 billion buy-in with the Trustees of two pension schemes sponsored by RSA Group, namely the Sal Pension Scheme (SALPS) and the Royal Insurance Group Pension Scheme (RIGPS). This transaction insured approximately £6.5 billion of liabilities and covered the pensions of 40,000 members. Aon played a critical multi-advisory role in this complex project, serving as the lead transaction and actuarial adviser to the Trustee of SALPS, the lead investment adviser for both SALPS and RIGPS, and the implementation project manager for both schemes. The challenges faced included navigating a highly complex and unprecedented transaction in the UK bulk annuity market, which required collaboration with various stakeholders and advisers. Aon’s deep experience in large-scale transactions was pivotal in developing tailored solutions to address the unique issues encountered during the process. The team was able to secure favorable pricing in the second half of 2022, despite the challenging timescales, which allowed the Trustee to enhance the security of member benefits effectively. Aon’s approach involved not only traditional buy-in aspects but also the deployment of bespoke solutions to resolve a variety of issues, enabling the Trustee to plan for future risk settlements. The collaboration with the Schemes’ internal investment experts focused on managing the schemes’ assets effectively to navigate market volatility, reduce costs, and increase certainty throughout the transaction. This successful buy-in is expected to serve as a blueprint for other large schemes with complex assets looking to secure member benefits in the current market environment.