Standard Life Completes £1.9bn Bulk Purchase Annuity for Sedgwick Pension Section
Standard Life, a member of the Phoenix Group, completed a significant £1.9 billion Bulk Purchase Annuity (BPA) transaction in July 2025 involving the Sedgwick Section of the MMC UK Pension Fund. This transaction secures the retirement benefits of approximately 6,500 members who were formerly employed by the Sedgwick Group, now part of Marsh McLennan.
The deal incorporates the novation of three longevity swaps with notable reinsurers Canada Life Re, Munich Re, and The Prudential Insurance Company of America, transferred from Mercer ICC Limited, a Guernsey-based captive insurance vehicle. Mercer acted as the lead broker on the transaction, providing comprehensive advisory services, including risk transfer, actuarial, investment, and insurer financial strength analysis, alongside legal counsel from top law firms for both trustees and the employer. The BPA market is increasingly pivotal for trustees and sponsors looking to secure defined benefit liabilities, with this deal representing a collaborative approach among Mercer, Standard Life, reinsurers, and legal advisors to optimize transaction terms and risk management. The Sedgwick Section's Trustee highlights the transaction as a key milestone in safeguarding members' benefits, reflecting a thorough market review to select Standard Life as a long-term partner. Mercer emphasizes the importance of flexibility in end-game strategies in light of evolving guidance, assisting clients in tailoring pension risk transfer solutions to individual circumstances.
This transaction exemplifies the growing reliance on bulk annuity solutions to efficiently manage pension scheme liabilities amid an evolving regulatory and market environment. Phoenix Group's diverse insurance and retirement businesses position it well to support clients through complex risk transfer and pension de-risking processes. The integration of pension risk management, reinsurance partnerships, actuarial expertise, and legal frameworks demonstrates the multifaceted approach required in the current defined benefit pension landscape.