Elementis Pension Scheme Gets £300m Aviva Buy-In

The Elementis Group pension scheme has finalized a £300 million buy‑in with Aviva, securing retirement benefits for roughly 4,500 members.

Deal structure and immediate impact

The transaction, completed in May, allows a portion of participants to receive additional voluntary contributions as a primary source of tax‑free cash through Aviva’s integrated DB&C Master Trust. A price‑lock mechanism enabled the trustee to sell down credit‑fund holdings and move into a payment‑focused portfolio, a step Aviva said helps minimise mismatch risk while providing pricing certainty.

Aon acted as the lead adviser to the trustees. Legal counsel was supplied by Squire Patton Boggs, and Aptia served as the scheme administrator. Aviva’s in‑house team also contributed legal advice on the deal.

“Even with extensive planning and preparation, we had to overcome a number of challenges in our journey but our risk transfer advisory team at Aon were excellent and methodically guided the trustees through every step in the process, supported by all of the scheme’s key advisers and Aptia as scheme administrator,” said Wai Wong, secretary and trustee director of the pension scheme.

Wong added that the focus now shifts to the data validation phase, emphasizing the need for a full plan and strong project management to meet stakeholder expectations.

Members now have secured benefits.

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Stakeholder reactions and next steps

Board chair Brian Taylorson expressed satisfaction with the choice of Aviva, noting that the deal would not have been possible without the full support of Elementis plc, the scheme’s sponsor. “Our sponsor was and remains strongly collaborative throughout this process,” he said.

Aviva senior BPA deal manager Sean Rooney highlighted the cooperative nature of the transaction, stating that the trustee now has the option to draw on Aviva’s expertise and specialist partners for data‑cleansing and verification activities. “This provides certainty to the Scheme and its sponsor that, regardless of any scheme administration constraints, they can always rely on Aviva to ensure their preferred timescales for data cleanse are met, providing greater flexibility over the timing of any potential future buyout,” Rooney said.

Leah Evans, a partner at Aon, noted the scheme’s liability profile required deep analysis of cash‑flow patterns. She said the trustees’ strong governance and sponsor support were key to efficient decision‑making and a positive outcome for members.

From a practical standpoint, the buy‑in reduces the scheme’s exposure to market volatility by transferring long‑term obligations to a commercial insurer. This move may also free up capital for the sponsoring company, allowing it to focus on core business activities while the pension assets are managed under a stable, insurer‑backed framework.

The transition to Aviva’s Master Trust introduces a new layer of oversight, which could streamline administrative processes for the trustees. However, the shift also places reliance on the insurer’s ability to meet future funding requirements, a factor that will be monitored closely by both the trustees and regulators.