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For institutional clients only
For institutional clients only
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Our Value Share BPA solution

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Value Share BPA

Improvements in Defined Benefit (DB) funding levels are encouraging trustees and sponsors to review their endgame strategies, often leading to a critical decision – insure or run-on?

While providing security for scheme members is paramount, there is an increasing appetite from corporate sponsors in accessing the potential surplus/profit generated from well-funded pension schemes, which cannot be achieved through a traditional buy-in.

With this in mind, we’ve built Value Share Bulk Purchase Annuity (BPA), an innovative, first-of-its-kind proposition that allows a sponsor to secure their members' benefits in the same way as a regular buy-in, but still participate in that upside in the longer term.

Value Share BPA at a glance

An innovative solution developed as an alternative to a traditional buy-in.

The first of its kind, it allowed trustee to insure scheme members in exactly the same way as a traditional buy-in transaction, providing member security.

Additionally, it enables corporate sponsors to participate in the risk and reward generated from insuring their well-funded UK pension scheme.

From a sponsor perspective
  • Retail access to profit:
    Sponsors can share in the upside associated with the bulk annuity transaction, typically available only to insurers.
  • Low risk:
    Sponsor's risk is limited to a small upfront investment without affecting their broader balance sheet.
From a trustee perspective
  • Peace of mind:
    Pension scheme members' payments are secured by a financially strong FTSE 100 insurer.
  • No additional complexity:
    The structure resembles a traditional 'vanilla' BPA, maintained exactly the same trustee experience.
A collaborative approach

We take a solutions driven and flexible approach to transactions of all sizes, including complex cases. Our team works closely with trustees, sponsors and advisers to tailor our support to each scheme’s needs.

To explore how Value Share BPA could deliver enhanced value and security for your scheme, we’d be delighted to talk.

Your BPA Solutions Team
Rosie Fantom

Head of Origination & Execution

Daniel Tesmer

Head of Origination & Execution

Linda Gilhooly

Head of Origination & Execution

‘Prudential’ is a trading name of The Prudential Assurance Company Limited, part of M&G plc, is registered in England and Wales. Registered office at 10 Fenchurch Avenue, London EC3M 5AG. Registered number 15454. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

The Prudential Assurance Company is a subsidiary of M&G plc, a company incorporated in the United Kingdom. This company is not affiliated in any manner with Prudential Financial, Inc, a company whose principal place of business is in the United States of America or Prudential plc, an international group incorporated in the United Kingdom.

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