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Standard Life expands pension risk transfer with investor consortium
The deal targets up to £2.0 billion in capital commitments over five years, with Standard Life contributing £500 million.
Retirement specialist Standard Life has formed a strategic partnership with a consortium of institutional investors to expand its Pension Risk Transfer, or PRT, business, aiming for up to £2.0 billion in capital commitments over the next five years, according to Reinsurance News.
The consortium includes CVC Capital Partners, Prudential Financials US unit PFI, and The Goldman Sachs Group, along with MS&AD Insurance Group Holdings and other long-term institutional investors. Standard Life will commit £500 million, with the remaining capital supplied by the consortium, led by CVC and PFI.
Standard Life said the partnership combines its PRT capabilities with those of CVC, PFI and Goldman Sachs, including global private markets asset origination. It is designed to keep full operational control with Standard Life while broadening the range of pension schemes the firm can support, including the largest and most complex defined benefit plans.
The expansion is also expected to increase Standard Life participation in the UK PRT market, where Reinsurance News noted that £350 billion to £550 billion of UK scheme assets are expected to be de-risked over the coming decade. The partners plan to originate high quality assets to back pension liabilities, a move intended to improve pricing competitiveness and structuring flexibility for trustees on complex de-risking transactions.