Standard Life Joins Forces with CVC and Goldman Sachs in Pension Risk Transfer Push
Standard Life has formed a partnership with a CVC-led consortium to accelerate its pension risk transfer business. The deal includes £2bn in commitments over five years, with Standard Life contributing £500m from its excess cash generation.
The insurer will control 51% of the voting rights in the partnership group and receive major cash reserves to take on large corporate pension deals.
The partner groups are expected to supply high-yielding global investments, allowing Standard Life to generate better returns and offer more competitive prices to pension trustees.
Standard Life's chief executive, Andy Briggs, said: 'By bringing together our comprehensive pension risk transfer capabilities with our partners' specialist private markets capabilities and significant capital resources… we will be able to offer trustees and sponsors for the largest pension schemes an alternative to secure the pensions of their members across the UK.'
The deal is part of a surge in interest in the £1.3 trillion pension buyout sector, which has been boosted by higher interest rates reducing plan liabilities.