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:
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."
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.
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.
