The Hickson UK Group Pension Scheme has completed a £208m bulk purchase annuity (BPA) transaction with Royal London.

The deal, which was finalised in June, secured the benefits of 1,250 scheme members and was Royal London’s third-largest external BPA transaction to date.

Including internal BPA transactions, the deal with the Hickson UK Group Pension Scheme marked the insurer’s sixth-largest overall.

The trustees, chaired by BESTrustees, were advised by Barnett Waddingham as risk transfer adviser, while Pinsent Masons provided legal advice and Mercer acted as investment adviser.

Mayer Brown provided Royal London with legal advice on the transaction.

The BPA deal builds on the scheme trustees’ existing relationship with Royal London Asset Management (RLAM).

“This transaction with the trustees of the Hickson UK Group Pension Scheme demonstrates our growing track record in the mid-market sized BPA market, with our sixth transaction over £200m,” commented Royal London BPA origination lead, Mark Sharkey.

“The trustees’ long-standing relationship with RLAM established a strong starting point for us to really understand their priorities and develop a tailored BPA solution.

“That extended to moving at pace to meet the scheme’s evolving needs at the point of exclusivity.”

Barnett Waddingham head of bulk annuities, Nikhil Patel, added: “In such a competitive space in the market, the transaction led to some strong proposals for the trustees to consider.

“Ultimately, the trustees were able to secure a deal that met the needs of the scheme, sponsor and members, including insuring the non-standard features of the benefits.

“It was a pleasure working with the trustees, Royal London and the scheme’s other advisers on the first of several significant transactions Barnett Waddingham expect to complete in 2026.”

This article was first published on our sister title, Pensions Age.

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