UK-based insurance company Aviva has completed an £850m buy-in of Arcadia Group’s pension schemes that include 8,800 members.

The transaction, which covers Arcadia Group Pension Scheme and Arcadia Group Senior Executive Pension Scheme, has enabled the scheme trustees to secure benefits over the Pension Protection Fund levels.

The deal will see Aviva will make recurring contributions to the scheme to assist in meeting the monthly pensioner payroll obligations.

Aviva head of bulk purchase annuity origination Jamie Cole said: “We are delighted to be securing the benefits of more than 8,000 members of the two schemes, providing security for members, and we look forward to welcoming them as Aviva customers once the buy-out is complete. 

“The Trustees’ goal of securing the best outcome for members and strong collaboration between parties helped achieve a smooth transaction.”

In November 2020, Arcadia Group went into administration, sending its pension funds to the Pension Protection Fund (PPF).

PPF is an industry-backed pensions lifeboat tasked with providing people with a defined benefit pension when an employer in the UK becomes insolvent.

Trustees chair Alda Andreotti said: “This transaction is the result of our commitment to achieving the best outcome for members and I would like to thank all parties who collaborated with us. 

“The Trustees are extremely pleased with this substantial development and have already taken the opportunity to update members on what the buy-in means for them. Our hard work will continue to maximise the benefits for all members and prepare the Schemes for buy-out.”

The UK-based insurance firm has also begun covering offshore wind projects as the company changes its underwriting focus to achieve climate targets.