Standard Life has agreed to a partnership with a consortium of investors to expand its pension risk transfer (PRT) business, with a combined initial capital commitment of up to $2.72bn (£2bn).
The consortium consists of CVC Capital Partners, Prudential Financial (PFI), Goldman Sachs and MS&AD Insurance Group, together with other long-term institutional investors.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
Capital will be drawn over five years, subject to regulatory approval.
The partnership is designed to allow Standard Life to support a wider range of defined benefit (DB) schemes including the “largest and most complex”.
Of the total £2bn commitment, £500m will be provided by Standard Life, funded through yearly excess cash generation, while the balance will come from the consortium, led by CVC and PFI.
CVC’s own commitment stands at £400m, to be drawn over multiple years.
Named Standard Life PRT Solutions, the partnership will operate through Standard Life’s existing regulated insurance platform, retaining the same customer proposition, governance and service model.
It will bring together Standard Life’s PRT capabilities and insurance asset management expertise with private markets asset origination from CVC, PGIM (PFI’s asset management business) and Goldman Sachs Alternatives.
These companies will originate assets to back pension scheme liabilities for both the new partnership and Standard Life’s existing PRT business.
Standard Life will retain full operational control of the venture, holding 51% of shareholder voting rights at completion.
It will be operated through Standard Life PRT Solutions, currently known as Standard Life Assurance.
Completion is expected in the first half of 2027 (H1 2027), ahead of any new business being written under the partnership.
The partnership is targeting large UK pension schemes within the broader £1.1tn held in UK DB schemes, with PRT transaction volumes projected at £350–550bn over the next decade, according to Lane Clark & Peacock.
Standard Life group CEO Andy Briggs said: “By bringing together our comprehensive PRT capabilities with our partners’ specialist private markets capabilities and significant capital resources, coupled with a trusted and well-known brand in Standard Life, we will be able to offer trustees and sponsors for the largest pension schemes an alternative to secure the pensions of their members across the UK.”
The move follows Standard Life’s previously announced acquisition of Aegon UK in April this year.
