Key Takeaways
- • Standard Life insured the £1.9bn Sedgwick Section of the MMC UK Pension Fund in a bulk purchase annuity (full buy-in) covering all 6,500 members, its largest single bulk annuity transaction to date.
- • The transaction, announced on 6 August 2025 but completed in July, was sponsored by Marsh McLennan, parent of consultancy Mercer, whose teams advised on risk transfer, actuarial, investment and insurer strength.
- • The deal converted three existing longevity swaps with Canada Life Re, Munich Re and Prudential Insurance Company of America (PICA), executed through a Guernsey-domiciled captive insurance vehicle.
- • The transaction is one of the largest UK buy-ins announced in 2025, following Honda's £800m deal with Legal & General and National Grid's £900m buy-in with Rothesay.
Summary
Standard Life has completed a £1.9bn full buy-in for the Sedgwick Section of the MMC UK Pension Fund, according to Pensions Expert. The transaction was announced on 6 August 2025 but completed in July. It covers the benefits of all 6,500 members of the section, who were previously employed by Sedgwick Group, an insurance broker acquired by Marsh McLennan in 1998.
Marsh McLennan, the sponsoring employer for the MMC UK Pension Fund, is the parent of consultancy Mercer. Separate Mercer teams advised the trustee board and Marsh McLennan on risk transfer, actuarial, investment and insurer financial strength matters, and are providing post-transaction management advice.
The deal also included the conversion of three existing longevity swaps with Canada Life Re, Munich Re and Prudential Insurance Company of America. Each was completed using a captive insurance vehicle domiciled in Guernsey.
Bruce Rigby, chair of the trustee board, described the bulk annuity transaction as a significant milestone for the scheme, stating: "The buy-in helps the trustee in continuing to safeguard the financial security of members' benefits." Kieran Mistry, director of defined benefit solutions at Standard Life, said the transaction required a highly collaborative approach among all parties.
Legal advice was provided by Linklaters to the trustees, Herbert Smith Freehills Kramer to Marsh McLennan, and Eversheds Sutherland to Standard Life. The Sedgwick deal is Standard Life's largest single bulk annuity transaction and one of the largest buy-ins announced so far this year. It follows Honda's £800m buy-in with Legal & General announced in July and National Grid's £900m buy-in with Rothesay announced earlier in the week of the report.
Marsh McLennan, the sponsoring employer for the MMC UK Pension Fund, is the parent of consultancy Mercer. Separate Mercer teams advised the trustee board and Marsh McLennan on risk transfer, actuarial, investment and insurer financial strength matters, and are providing post-transaction management advice.
The deal also included the conversion of three existing longevity swaps with Canada Life Re, Munich Re and Prudential Insurance Company of America. Each was completed using a captive insurance vehicle domiciled in Guernsey.
Bruce Rigby, chair of the trustee board, described the bulk annuity transaction as a significant milestone for the scheme, stating: "The buy-in helps the trustee in continuing to safeguard the financial security of members' benefits." Kieran Mistry, director of defined benefit solutions at Standard Life, said the transaction required a highly collaborative approach among all parties.
Legal advice was provided by Linklaters to the trustees, Herbert Smith Freehills Kramer to Marsh McLennan, and Eversheds Sutherland to Standard Life. The Sedgwick deal is Standard Life's largest single bulk annuity transaction and one of the largest buy-ins announced so far this year. It follows Honda's £800m buy-in with Legal & General announced in July and National Grid's £900m buy-in with Rothesay announced earlier in the week of the report.
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