LONDON, 30 November 2022 – Aon plc (NYSE: AON), a leading global professional services firm, has announced that it was the lead adviser to the Balfour Beatty Pension Fund on its £1.7 billion longevity transaction with SCOR and Zurich Assurance Ltd.
The transaction will provide the fund with protection against the risk of costs rising from pensioner members and their dependants living longer than expected. The transaction structure offers the fund’s Trustee future flexibility, control and security, while minimising cost, governance and operational burden through Zurich’s pass-through solution, under which the Trustee and reinsurer have mutual credit risk exposure.
Aon’s risk settlement team acted as the lead adviser on the transaction, providing advice on the design and structure of the transaction, as well as negotiating the intermediary insurance terms with Zurich and broking the reinsurance. Legal advice was provided to the Trustee by CMS.
Tom Scott, partner at Aon, said:
“We were pleased to support the Trustee with the successful execution of this transaction, which marks a further step in the fund’s de-risking journey. The transaction is further evidence of a vibrant insurance/reinsurance market, which is offering commercially attractive pricing and terms to pension schemes.”
James Parker, partner at CMS, said:
“It was an absolute pleasure working together with Aon and the Trustee. The transaction was highly collaborative and has delivered a very successful outcome for our client."
More information about Aon’s pension risk settlement services is available here
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