Co-operative Group Pension Scheme, Manchester, England, insured £350 million ($437 million) in liabilities through a bulk annuity buy-in transaction with Aviva, a spokesman said.
The deal, which covers a portion of the liabilities of the £8.5 billion Co-op section of the plan known as Pace, follows two separate £1 billion transactions conducted earlier this year, the Co-op spokesman added. Pension Insurance Corp. and Aviva were the insurers in each of the previous transactions.
The group completed its first risk-transfer transaction for the Bank section of the plan in April, with a £400 million buy-in deal with Pension Insurance Corp.
Aviva will insure the liabilities of an additional 2,300 plan participants through the deal, announced Wednesday. Thirty percent of liabilities in the plan are now insured, the spokesman said.
"The ability to transact this quickly and efficiently is testament to all of the hard work from our colleagues in the Co-op pensions department in getting Pace to a position where such security-enhancing options are possible. Thanks also go to all of our advisers for their work in exceptionally challenging circumstances in making this outcome possible," Chris Martin, chairman of the plan's trustee, said in a news release.
Consultant Aon advised on the deal. In addition, law firm Linklaters LLP provided legal advice and Mercer provided investment advice.