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Bulk Annuities

Our proposition

Scottish Widows provides tailored bulk annuity solutions to defined benefit pension schemes to meet their de-risking objectives. A bulk annuity is an insurance policy that is purchased by pension scheme trustees to better secure members’ benefits by removing longevity, investment, interest rate and inflation risks associated with defined benefit pension schemes, either as an asset of the scheme (a buy-in) or by issuance of individual policies to the members (a buy-out).

Scottish Widows is a leading provider of financial services and our heritage, financial strength and expertise mean that we can help to support pensions scheme trustees achieve their de-risking objectives.

A long history

  • We have been looking after policyholders’ interests for over 200 years
  • We understand what it takes to provide long term security, which is important because a bulk annuity is a relationship which could last for over 50 years.

Financial strength

  • Scottish Widows is highly rated for financial strength by Moody's (A2), Standard & Poor's (A) and Fitch (AA-) (as at July 2016)
  • We had £3.5bn of surplus capital on a statutory basis (as at 31 December 2015)
  • More information can be found here about our financial strength.

A diversified and matched investment strategy

  • Our £14 billion immediate annuities are well matched by assets held in a diversified portfolio of gilts and high quality credit investments.
  • These include illiquid assets (for example social housing loans, education loans and infrastructure), which are a good match to long term annuity liabilities.


For employer use only.