Miller Insurance pension fund seals £100m deal
The Miller Retirement Benefits Scheme has completed a £100 million bulk purchase annuity (BPA) deal with M&G, using the insurer’s “BPA Plus” structure. This transaction blends traditional security with M&G’s £132 billion With-Profits Fund, seeking to secure members’ core benefits while sharing in the potential for discretionary bonuses over time.
How the deal works
The transaction combines a standard BPA with M&G’s With-Profits Fund. Members receive guaranteed core benefits while also gaining exposure to potential discretionary bonuses. The policy was issued by M&G’s subsidiary, Prudential Assurance Company. The trustee said it chose M&G as the insurer due to its commitment to delivering an accelerated transition to buyout, the potential upside for members from discretionary bonus payments, and competitive pricing.
LawDeb trustee Daniel Barlow said the arrangement secures benefits and leaves room for future enhancements. “We are delighted to have completed this transaction with M&G, securing members’ benefits while also offering the potential for enhanced outcomes in the future,” he said. “The transaction was delivered in an efficient manner with great teamwork and collaboration between the trustee, sponsor and respective advisers.”
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Who was involved
LCP served as risk transfer and investment adviser to the trustee. Barnett Waddingham handled actuarial and administrative duties, while Hogan Lovells provided legal advice. Miller Insurance Services, the scheme’s sponsor, is a specialist insurance and reinsurance broker.
Miller Insurance group chief financial officer, Neil Perry, described the transaction as an important milestone in delivering greater certainty and security for its pension scheme members. “We are pleased to have worked closely with the trustee, M&G and our advisers to achieve a strong outcome that supports both members’ benefits and the long-term objectives of the scheme,” he said.
M&G’s head of bulk annuity origination and execution, Rosie Fantom, said: “We’re pleased to support Miller Insurance in providing long-term security for its pension scheme members. This transaction demonstrates the benefits of BPA Plus, combining the certainty of a bulk annuity with the opportunity to deliver enhanced outcomes over time. We look forward to continuing our partnership with the trustee.”
