Coats U.K. Pension Scheme, Bristol, England, completed a £350 million ($429 million) buy-in with Aviva, the organizations said in a joint news release Tuesday.
The transaction was instigated by a joint working group of plan trustees and Coats Group management, to "set the scheme on a journey towards full insurance," the release said. It covers 3,700 participants — "a significant portion" of members, according to Jamie Cole, head of bulk purchase annuity origination at Aviva. Further details were not immediately available.
Aviva's commitment to sustainability was a key factor in choosing it for the buy-in, Trustee Chairman Chris Martin said in the release. Aviva has pledged to become a net-zero carbon emissions company by 2040.
Coats U.K. Pension Scheme trustees were advised by Lane Clark & Peacock on derisking, Redington on investment and Sackers on legal advice. Coats Group, which manufacturers thread, zips and fasteners, was advised by Isio.