Royal London, a co-provider of life, pensions and investment solutions, has entered into a £55m bulk purchase annuity (BPA) deal with the trustees of Steamship Insurance Management Services Limited pension and guarantee schemes.
The Royal London BPA team has secured 13 deals with external pension schemes by 2025, with a total premium value of £865m, covering almost 7,000 members, with further deals completed recently and on an exclusive basis.
The latest deal is the third for Royal London, with Barnett Waddingham acting as risk transfer broker, covering more than 350 members. The Trustees are also working with Wedlake Bell as legal counsel and SECOR Asset Management as investment advisor.
Hogan Lovells advised Royal London on the UK’s first BPA transaction between a mutual BPA provider and the pension scheme of another mutual insurance company.
This is the 31st transaction completed in 2025 by Barnett Waddingham’s risk transfer team, which expects to complete approximately 40 transactions this year.
Tom Hill, Origination Manager at Royal London BPA, commented: “We are privileged to be working with the trustees of Steamship Pension and Guarantee Scheme, a committee that is very familiar with the power of mutual relationships.
“This transaction simply reinforces our long-term commitment to delivering truly differentiated choice in the BPA market and delivering a best-in-class experience for trustees and their members over a long period of time.
“We are also delighted to have completed three transactions with the team at Barnett Waddingham in six months and we look forward to working with them on further transactions in the future.”
Barnett Waddingham’s Andy Smith added: “After many years of working with the scheme, it’s great to be able to help the trustees complete the buy-in deal and achieve their objectives. Royal London was able to deliver on multiple fronts including price and wider offering. It’s particularly exciting to be able to achieve market first, working with the Royal London team to achieve a mutually beneficial outcome for everyone.”
Graham Jones, speaking on behalf of the trustees, said: “Given our emphasis on service and stability, the opportunity to transact with a mutual was an important consideration for the trustees. We are delighted to have successfully completed the acquisition with Royal London, supported by excellent advice from Barnett Waddingham, Wedlake Bell and SECOR, which we believe is in the best interests of the scheme members.”