PHNX Phoenix Group Holdings Plc

By Adam Clark

Insurers Aviva PLC (AV.LN) and Phoenix Group Holdings (PHNX.LN) said Thursday that they have completed a combined 1.4 billion-pound ($1.88 billion) purchase of bulk annuities from the Marks & Spencer Group PLC (MKS.LN) pension plan.

Aviva has taken on GBP925 million of bulk annuities, while Phoenix has taken on GBP470 million of annuities. The insurers said the deal will cover a proportion of the liabilities of M&S's retired pension plan members.

Aviva said the deal builds on its existing insurance services for M&S's retail banking operations. Both Aviva and Phoenix said the deal establishes an umbrella framework for future potential pension de-risking deals with M&S.

"Not only does this latest deal build on the great relationship we already have with Marks & Spencer but as our largest bulk annuity deal to date, it also perfectly demonstrates our increased appetite for bigger deals," said Tom Ground, managing director of defined benefit solutions at Aviva.

Justin Grainger, head of bulk purchase annuities at Phoenix, said: "We announced our intention to enter this market in 2017 as it offers an additional and complementary source of growth for Phoenix. We look forward to building our relationship further with Marks & Spencer and helping protect the security of their members' benefits."

Write to Adam Clark at adam.clark@dowjones.com

(END) Dow Jones Newswires

May 17, 2018 08:39 ET (12:39 GMT)

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