Elementis scheme completes £300m Aviva buy-in with price lock
By IAN Editorial Desk – Aviva on Monday disclosed a £300 million buy-in with the Trustee of the Elementis Group Pension Scheme, updating a transaction...
Aviva on Monday disclosed a £300 million buy-in with the Trustee of the Elementis Group Pension Scheme, updating a transaction completed in May 2026 that covered defined benefit liabilities. Unlike the Aston Martin buy-in first announced in July, as Insurance Asset News reported, this disclosure adds execution detail on how the scheme moved assets towards premium payment and how some members could use additional voluntary contributions within the structure.
| Metric | 2026 | 2025 | Change |
|--------|------|------|--------|
| Group solvency capital requirement (SCR) | Not disclosed for this transaction | £8.9 billion group SCR at 31 December | Not attributable from available sources |
| Transaction size | £300 million buy-in | Not disclosed | Not disclosed |
The transaction secured the benefits of 4,500 members, according to available coverage, and included a structure that allowed a subset of members to access additional voluntary contributions as a primary source of tax-free cash through Aviva’s integrated defined benefit and consolidation master trust solution. That suggests the deal was shaped not only around liability insurance, but also around member option handling at retirement.
Investment execution detail centred on a price lock that let the Trustee sell down credit fund holdings and move into the premium payment portfolio, with the stated aim of reducing mismatch risk and preserving pricing certainty through the process. This links the transaction directly to a portfolio transition, rather than to a simple premium transfer completed in one step.
The available material does not provide a premium breakdown covering discount rates, credit spreads, insurer margin or expenses, and it does not set out a quoted comparison between price and liability value. Nor do the public sources describe the lock period, trigger conditions, expiry terms or any fee formula attached to the price-lock arrangement, leaving the disclosed investment detail focused on the asset sell-down rather than on the pricing mechanics.
Aviva’s 2025 results materials showed a group SCR of £8.9 billion at 31 December 2025, but did not attribute any incremental SCR change to the Elementis transaction.
Aon advised the Trustee on the deal, with legal advice to the Trustee from Squire Patton Boggs (UK) LLP, while Aviva used in-house legal support. Public disclosure also stops short of setting out governance or execution mechanics for premium payment beyond the transition into the premium payment portfolio.
Sources: news.google.com
