What we do

We work with trustees and their advisors on pension risk transactions through which all risks within the scheme, or part of the scheme, are passed to us.

During the transaction, we analyse the profile of future pension payments and consider the relevant risks:

longevity risk is reinsured to a specialist, third party, investment grade reinsurer
liabilities are hedged against interest and inflation rate movements
the assets received as premiums (typically gilts and cash) are reinvested
our purposeful investment strategy means we seek secure assets that match liabilities for decades to come. These are not just limited to gilts and bonds but also include investments in urban regeneration, renewable energies, education, student accommodation and Build-to-Rent

Transferring pension risk to us, is done in one of two ways:

A buy-in

An insurance policy bought by trustees to cover some or all of the scheme’s future pension payments. It is then held as an asset of the scheme, which remains in place. We make regular payments to the scheme that cover the benefits secured – the administration responsibilities stay with the trustees.

A buyout

An insurance policy bought by trustees that covers all the scheme’s future pension payments. The scheme is wound up, individual PIC policies are issued to the members, and we pay their benefits directly to them. We also take on the future administration.

Buy-in or buyout? Find out more

Merchant Navy Officers' Pension Fund ('MNOPF') - £1.6 billion buy-in

"This buy-in enables us to more effectively manage the risks faced by the Fund as a whole, providing greater certainty to members that their benefits will continue to be paid in full from the Fund. It is also good news for employers in the maritime and shipping industry, who have already saved many millions in deficit contributions over recent years as a result of our improved funding position."

Rory Murphy

MNOPF Chair

Delivering outstanding customer service

We put our customers first. We’re incredibly proud to back up our words with a fantastic record in customer satisfaction and customer service awards – achieved by putting our policyholders at the heart of everything we do. We’re entirely focused on our purpose, which is to pay the pensions of our current and future policyholders.

Our recent awards

Investments that make a difference

The social value of investments is important to us. The more social value our investments generate, the more likely they are to be around to meet our pension obligations in the decades to come. So our purposeful investment strategy does more than pay the pensions of our policyholders - our investments really do make a difference for younger and future generations to come and are a form of intergenerational transfer.

Purposeful investments

Pension Risk Transfer process explained

The benefits of buyout

What do defined benefit pension scheme members think about the risks to their pensions?

'The benefits of buyout', explains in jargon-free terms why the interests of our industry align with those of 9 million pension scheme members. Because we exist to serve those members, we care deeply about what they think. As this document shows, when we asked them about their priorities for their pensions, their answer was clear: what matters most to them is knowing that their pension benefits are secure.