The trustees of the Deutsche Bank Defined Benefit (DB) (UK) Pension Scheme have completed a £400m bulk purchase annuity buy-in with Aviva, securing the pension scheme benefits for nearly 1,300 members.

The buy-in will remove the investment and longevity risk of these members from the scheme, although members will experience no change in the amount of benefits they receive or the way in which they are paid as a result of the deal.

The scheme trustees were advised throughout the process by LCP, while CMS Cameron McKenna Nabarro Olswang LLP provided legal advice.

This tranche of scheme liabilities was completed under an umbrella contract, which is also expected to provide an efficient basis for future transactions.

DB (UK) Pension Scheme trustee board chair, Michael Wrobel, argued that the “extensive work” of the trustee, bank and advisers means the scheme is well positioned to take advantage of future opportunities to further de-risk as they arise.

“We are very pleased to conclude this buy-in with Aviva,” he continued. “It is another significant step on our de-risking journey and the excellent outcome with Aviva reflects the expertise and collaborative approach of our advisers and our close working relationship with the bank.”

Adding to this, Deutsche Bank AG head of pensions and benefits UKI, Jeremy Sowden, stated: “This latest transaction enables Deutsche Bank to hedge a material portion of the liabilities of scheme, with the majority of pensions currently in payment now insured.

“It is another step on our ongoing journey to reduce risk in relation to our defined benefit pension obligations, benefitting the scheme members, the trustee board and the bank.

“We were able to do so on mutually attractive terms, including comprehensive residual risks cover that further helps the bank manage its risk exposure. We will continue to work closely with the trustee board to evaluate future de-risking opportunities.”

Aviva head of bulk purchase annuity origination, Jamie Cole, added: “We worked closely with all parties to create a bespoke arrangement for this transaction, one which will ensure we can fulfil future opportunities quickly and efficiently.

“This deal further demonstrates our appetite and ability to work with schemes of complexity and scale as they look to enter this market.”


This article first appeared on our sister title, Pensions Age.

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