Standard Life, the FTSE 100 long-term savings group has raised £2 billion from a consortium of investors to expand its pension risk transfer (PRT) business to support schemes across a broader range of defined benefit schemes.

Pension risk transfers allow companies to move these scheme liabilities – in which retirement payouts are guaranteed based on salary and service – off their corporate balance sheets.

The partnership targets large UK defined benefit schemes, expected to drive a significant share of the £350bn to £550bn in de-risking transactions projected over the next decade.

Standard Life will retain full operational control of the partnership, maintaining the same customer proposition, governance, and service model while leveraging private credit and asset origination from consortium partners.

The five-year partnership, named Standard Life PRT Solutions, includes MS&AD Insurance, the Japanese insurance giant and its largest shareholder, CVC Capital Partners, Prudential Financial, and Goldman Sachs. Standard Life is contributing £500 million from its yearly excess cash generation. 

Standard Life, formerly Phoenix, expects the venture to generate fee-based revenues and support its mid-single-digit percentage operating cash generation growth.

The UK pension risk transfer market remains one of the largest and most attractive insurance markets globally, with approximately £1.2 trillion of defined benefit pension liabilities yet to transfer to insurers. The new platform will focus on serving larger pension schemes and supporting corporate sponsors seeking to de-risk legacy pension obligations.

Andy Briggs, group chief executive at Standard Life, said: “We are delighted to announce the expansion of our PRT business in partnership with a group of internationally recognised financial institutions, who are committing global capital into the UK PRT market.

“For over 200 years, Standard Life has supported people across the UK to plan for and secure their retirements, and this focus and commitment remains central to our strategy today.

“By bringing together our comprehensive PRT capabilities with our partners’ specialist private markets capabilities and significant capital resources, coupled with a trusted and well-known brand in Standard Life, we will be able to offer trustees and sponsors for the largest pension schemes an alternative to secure the pensions of their members across the UK.

“This partnership further accelerates Standard Life’s vision to become the UK’s leading retirement savings and income business.”

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