LCP advises on £700 million buy-in between Aviva and the ABB Plan

LCP advised on the £700 million bulk purchase annuity (BPA) buy-in transaction between Aviva and the ABB Plan, in the UK.

The transaction, completed in July 2025, included a £620m in-specie asset transfer of UK and US corporate bonds and UK gilts. It secures the benefits of more than 4,450 pensioner members and over 2,900 deferred members. The scheme sponsor is ABB Limited (“the Company”). ABB is a global technology leader in electrification and automation.

LCP were the lead transaction advisers to the Company. 

Ricky Patel, Partner at LCP, said: “ABB’s objective from day one was to reduce worldwide pension risk as part of its global strategy. As one of the largest defined benefit plans in the group, the UK buy-in is a significant milestone in achieving this objective, and we've thoroughly enjoyed advising ABB on all aspects – from the overarching strategy to the pricing, contract negotiations and asset transfer. Now the buy-in is complete, ABB’s position is future-proofed across key areas, and the residual pension exposures much reduced.”

Andy Morley, Senior Deal Manager at Aviva, said: “It has been fantastic to partner with the scheme trustees to deliver long-term security for thousands of scheme members. The transaction is testament to the strong relationship and shared commitment from all parties to safeguard pension benefits. We’re pleased to have reached this significant outcome and look forward to welcoming members to Aviva in the future.”

Carolan Dobson, Chairperson of ABB Plan, said: “The trustees are delighted to have completed a buy-in with Aviva which covers all our members' benefits, giving them the additional security provided by a well-capitalised and highly regulated insurance company. This is the fruition of several years of careful planning and we are delighted that the buy-in is now completed.”

Julie Priestley, Secretary to the Trustees, added: “Ensuring a smooth transition for the Plan and its members was a key priority throughout this process. Thanks to the strong collaboration between the Trustees, the Company, and our advisers, we were able to deliver this complex transaction seamlessly and with confidence.”

Lee House, Pension Management at ABB, commented: “Following a collaborative process working with the Trustees, we are pleased to have completed a full buy-in for all liabilities of the ABB Plan and provided further security of members’ benefits. This is a hugely successful outcome for us as part of our pension strategy and corporate objectives. The Company wishes to thank the Trustees and the advisory teams for their support in navigating this important project.”