Sackers advises on £1.7bn longevity transaction for Nationwide Pension Fund

Nationwide Pension Fund has announced the completion of a major longevity risk transfer transaction with Zurich Assurance Ltd and Prudential Financial Inc. Sackers is the longstanding adviser to the Trustee of the Fund and advised them throughout the project.

The transaction transfers the longevity risk of approximately £1.7bn of pension scheme liabilities covering approximately 7,000 members. Under the transaction, the longevity risk of the pension scheme relating to these members will be passed through to Zurich UK, to an insurance subsidiary of PFI as the reinsurer, with a limited recourse mechanism protecting Zurich UK against exposure under the transaction.

Lewis Perrin, Portfolio Manager for the Nationwide Pension Fund, said: “Sackers played a pivotal role in the implementation of this longevity risk transfer transaction. The expertise and support they provided to the Joint Working Group helped to ensure the smooth delivery of the project. Sackers’ commercial understanding and commitment to providing clear advice were also vital in protecting the interests of our members.”

Paul Phillips, partner at Sackers, said: “We are delighted to have acted in this significant longevity transaction for the Nationwide Pension Fund. Our dedicated team worked closely with the Trustee and other key stakeholders to navigate the complexities of the transaction and ensure its successful execution. We are proud to have provided legal support throughout the process, safeguarding the interests of the members and helping to secure their pension benefits. Sackers has over a decade of experience working on multiple longevity transactions, leveraging our understanding and deep experience of the operation of pension schemes. This transaction demonstrates again the depth of our experience in complex risk transfer transactions.”

The Sackers team comprised partners Paul Phillips, Ralph McClelland and Vicky Carr, with senior associate support from Paige Willis and Liam Goulding and transaction management from Elizabeth Nolan.