British retailer Marks and Spencer has wrapped up a pensioner buy-in policies deal worth £1.4bn with Aviva and Phoenix Life, covering around a third of its scheme’s pensioner liabilities.

The buy-ins have allowed the M&S scheme to match benefit cash flows while eliminating longevity risk for a portion of its pensioner population.

Aviva assumed £925m of Marks and Spencer’s defined benefit pension liabilities while Phoenix completed its first bulk annuity contract by assuming £470m of pension liabilities.

Aviva managing director of DB solutions Tom Ground added: “We’re delighted that the Marks and Spencer Pension Scheme has chosen us to insure a proportion of the pension benefits of its members.

“Not only does this latest deal build on the great relationship we already have with Marks and Spencer but as our largest bulk annuity deal to date, it also perfectly demonstrates our increased appetite for bigger deals.”

Phoenix Group head of BPA Justin Grainger stated: “We look forward to building our relationship further with Marks and Spencer and helping protect the security of their members’ benefits.

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By GlobalData

“This is a growing marketplace and, as this transaction demonstrates, we are well-placed to offer attractive solutions to other defined benefit pension schemes.”