Standard Life Plc has formed a strategic partnership with a consortium led by CVC Capital Partners Plc and Prudential Financial Inc. to expand its UK pension risk transfer (PRT) business. The consortium also includes Goldman Sachs Alternatives and Japanese insurer MS&AD Insurance Group Holdings Inc., along with other long-term institutional investors. This collaboration aims to target large UK pension schemes and corporate sponsors looking to offload their defined-benefit pension obligations to insurers.
The partnership, named Standard Life PRT Solutions, will receive an initial capital commitment of up to £2 billion ($2.7 billion), which is expected to be drawn over five years. Standard Life will contribute £500 million, while CVC will provide £400 million, with the remaining balance coming from other consortium members. Standard Life will maintain full operational control of the platform, leveraging its expertise in PRT, while the consortium partners will provide significant capital and access to private market investment opportunities, such as asset-backed lending, structured credit, and real estate credit.
This deal, subject to regulatory approval, marks a growing trend of insurers partnering with private capital firms to meet the increasing demand in the pension de-risking market. The UK PRT market is substantial, with approximately £1.2 trillion of defined-benefit pension liabilities yet to be transferred to insurers. The partnership combines Standard Life's established PRT capabilities with the capital and asset origination strengths of CVC, Prudential Financial (through PGIM, its asset management business), and Goldman Sachs, positioning the venture to serve a broader range of pension schemes, including the largest and most complex ones.
