Smiths Group Finalizes £760 Million Pension Deal with M&G

Smiths Group, recognized in the FTSE 100 index, has finalized a substantial £760 million buy-in transaction with M&G for its defined benefit (DB) pension scheme. This agreement ensures full insurance coverage for the scheme without necessitating additional funds from the company itself.

This transaction benefits over 10,000 members of the Smiths Industries Pension Scheme, marking the fifth in a series of bulk annuity deals for the scheme, which has previously engaged with Canada Life and Pension Insurance Corporation. As of July 31, 2025, the scheme reported assets worth £1.3 billion and liabilities near £1.2 billion.

The trustees of the pension scheme selected M&G based on their robust administration capabilities and member service quality, as noted in a statement released by the insurer. Nicholas Godden, the chair of the trustee board, expressed gratitude for the collaborative efforts contributing to the successful execution of this transaction. He emphasized the importance of the collective expertise and support from advisers and the Smiths Group’s in-house pensions team.

Simon Powell, the group pensions director at Smiths, commended the effort and teamwork demonstrated by everyone involved, underlining the commitment to safeguarding the long-term security of members' benefits. The advisers involved included Hymans Robertson for risk transfer and Sackers for legal guidance.

In related developments, Smiths Group disclosed the completion of a buyout for its TI Group Pension Scheme in May, impacting over 15,000 members and involving multiple insurers. This scheme had assets totaling £823 million as of the end of July 2025.

These moves are part of Smiths' broader strategy to mitigate legacy financial risks. Julian Fagge, the company's chief financial officer, noted that these transactions enhance financial stability by eliminating pension risks and the need for future cash funding, ultimately reducing balance sheet volatility and supporting strategic transformation.

In other market news, Aviva and Just Group have both announced smaller bulk annuity deals. Aviva conducted a £24 million buy-in for an unnamed pension scheme covering 240 members, incorporating GMP equalization. Meanwhile, Just Group completed a £4 million buy-in for the Combat Stress legacy DB scheme, covering 39 members.

These activities underline the ongoing vibrancy within the sub-£100 million bulk annuity market segment, with the respective deals highlighting various strategies employed by pension schemes and insurers to manage long-term financial commitments.