Bulk annuity provider services

We are recognised as a leading adviser to the sponsors and trustees of UK defined benefit (DB) pension schemes. In addition, our insurance consulting team has extensive experience of supporting UK life companies.

Bringing these together makes us an ideal partner with a comprehensive set of knowledge and services to the Bulk Purchase Annuity (BPA) provider market.

Pricing modelling and support

We have been instrumental in building models for the pricing teams of a number of key participants in the market, providing advice on model specifications, assisting in the build of models on a range of platforms and undertaking robust testing plans.

When models are up and running, we have a dedicated team that has been providing pricing resource support for many years, interpreting and cleansing data and producing cashflows on an outsourced basis, and providing ad-hoc support to help firms manage resource peaks.

Regulatory and capital advisory service

The implementation of Solvency II reforms and optimising capital under the new Solvency UK regime will be a key competitive differentiator for BPA firms. In particular, the Solvency UK regime is likely to significantly broaden the universe of Matching Adjustment (MA) eligible assets whilst also introducing new forms of regulatory safeguards such as MA attestation and stress testing.

Our expert insight can help you interpret the expectations of the regulator, enabling you to design, implement and negotiate approaches to maximise returns on capital.

We can provide advice and independent implementation support across MA calculations and treatment of newly eligible assets, credit and longevity internal modelling, and derivative hedging programmes.

Modelling, processes and controls

We pride ourselves on our independence of advice. We are not tied to one platform or programming language and have significant experience of the key market solutions. So we are therefore ideally placed to help you design and implement models and process improvements.

In addition, we can help on the control environment, especially for pricing which will become more crucial than ever as transaction numbers and sizes grow, So you can be sure your model governance and processes are in line with your firm’s appetite.

Administration

Administration is a core part of our business. We have over 500 administrators with expertise in administering DB liabilities for insurance companies and the Pension Protection Fund (PPF), as well as for individual schemes.

Find out more about our administration expertise.

Additional services

We can support a range of additional services for new and existing BPA providers, including:

• Market analyses and pricing benchmarking to support strategic advice
• Longevity analyses, including reinsurer negotiation
• Building risk frameworks, including allowing for climate change risks
• Investment Strategy advice, especially around MA applications and meeting PPP requirements for illiquid private credit assets and securitisations
• Expert interim resource to lead or support actuarial, risk or investment teams with delivering BAU