Standard Life in £530m Cobham annuity deal

Rhian Littlewood

Standard Life, part of Phoenix Group, said it has concluded a £530 million Bulk Purchase Annuity (BPA) transaction covering 3,000 members of the Cobham Pension Plan.

“This transaction further reinforces Standard Life’s credentials, commitment to, and ambition in the BPA market, following consistently strong performance reported in 2022, with £3.2bn of bulk annuity volumes announced year-to-date,” said Standard Life.

Rhian Littlewood, Senior Business Development Manager at Standard Life, said: “This transaction is a prime example of how important it is for trustees to be adaptable and agile to take advantage of favourable market opportunities. Having initially approached the market looking to secure a pensioner only transaction, the Cobham Pension Plan trustees found themselves in a position where they were able to secure their liabilities in full.”

Cobham Limited chief financial officer Sven Lewis said: “This announcement is very good news and ensures that the benefits of all the members of the plan have now been secured.

“Since Advent’s acquisition of Cobham nearly three years ago, we have had a clear plan to de-risk our pension scheme, which has included over £150 million of increased cash investment from Advent into the plan.”

Lane Clark & Peacock LLP acted as the lead advisers to the trustees for this transaction, with additional support from AR Pensions and Wellbeing Consulting (ARPW), while legal advice was provided by Squire Patton Boggs LLP and Sacker & Partners LLP.

Standard Life were advised by CMS Cameron McKenna Nabarro Olswang LLP (CMS).