Standard Life has partnered with CVC, Prudential Financial, Goldman Sachs and MS&AD to expand its pension risk transfer business.
The partnership has a combined initial capital commitment of up to £2bn.
It will enable Standard Life to offer trustees and sponsors of pension schemes an alternative to secure the pensions of their UK members by combining its brand with the specialist private markets capabilities and capital resources of its partners.
It said the partnership will allow it to compete for a broader range of pension risk transfer deals, including larger UK complex defined benefit schemes. It also expects access to private market assets to improve its pricing competitiveness.
Nuwan Goonetilleke, CEO of Standard Life Pension Risk Transfer Solutions, said: “This partnership has been deliberately structured to continue to secure high-quality outcomes for members, while supporting trustees in executing complex de-risking transactions with confidence, combining Standard Life’s expertise with access to a diversified set of best-in-class private markets originators.
“Our Consortium approach enhances our ability to deliver competitive pricing and innovative structuring for trustees, whilst maintaining Standard Life’s independence and control.”
The firm estimates that £350bn-£550bn of UK scheme assets are expected to de-risk over the next decade.
Standard Life has committed £500m over five years to the partnership and will retain full operational control.
Andy Briggs, group CEO of Standard Life, said: “By bringing together our comprehensive PRT capabilities with our partners’ specialist private markets capabilities and significant capital resources, coupled with a trusted and well-known brand in Standard Life, 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.
“This partnership further accelerates Standard Life’s vision to become the UK’s leading retirement savings and income business.”
