London Daily

Focus on the big picture.
Sunday, Jan 26, 2025

Former outsourcing giant Interserve seals £735m Aviva pension deal

Former outsourcing giant Interserve seals £735m Aviva pension deal

Interserve Group, which once employed 45,000 people in Britain, has agreed a buy-in deal to guarantee payouts to thousands of current and future pensioners.
A company that once ranked among Britain's biggest outsourcers has struck a deal with Aviva to protect payouts to thousands of pensioners years after it collapsed into insolvency.

Sky News understands that Interserve Group has agreed a pension buy-in insurance deal that will cover liabilities to more than 2700 deferred members and over 4000 existing pensioners.

Aviva is said to have been selected by the Interserve pension trustees following a review of the wider market because its insurance pricing is likely to provide a higher level of benefits to scheme members.

Interserve collapsed into administration in 2019, since when most of its operations have been sold to the likes of Mitie, the rival outsourcing group.

Its former construction arm - now called Tilbury Douglas - is now a standalone company but remains owned by Interserve's shareholders.

Talks to sell it to London-listed Kier Group collapsed last year but are expected to lead to a new sale process in due course.

The jewel in its crown, equipment services arm RMD Kwikform, had previously been sold to France's Altrad Group.

At its largest, Interserve employed more than 45,000 people in the UK.

Aviva had agreed a separate £300m pension buy-in deal with Interserve in 2014, at a time when such pension risk transfer arrangements were becoming more commonplace in corporate boardrooms.

The latest deal, which is understood to have the backing of The Pensions Regulator, is unusual partly because part of Interserve continues to trade solvently in the form of the construction business.

It is expected to ensure that the Interserve scheme avoids the Pension Protection Fund, the industry-funded lifeboat, and will therefore be advantageous to scheme members.

Trustees are understood to have decided that Tilbury Douglas would not be able to support the scheme at high enough levels to secure members' full benefits in the long term, leading to the value of the scheme eroding over time.

Led by Alan Lovell, its chairman, Interserve Group is now expected to seek to complete its programme of asset realisations and disposals, with the residual elements of the holding company being wound up by the end of next year.

Interserve, which has been advised on the pension deal by PricewaterhouseCoopers and Slaughter & May, declined to comment.
Newsletter

Related Articles

0:00
0:00
Close
Key Takeaways from the 2025 World Economic Forum in Davos
In the face of significant casualties against Israel, Hamas enlists 15,000 new combatants.
China's DeepSeek AI Innovation Threatens U.S. Supremacy in Artificial Intelligence
Storm Éowyn Brings 'Danger to Life' Warnings Across UK and Ireland
President Trump Orders Declassification of JFK, RFK, and MLK Assassination Records
President Trump Signs Executive Order to Bolster U.S. AI Leadership
Germany’s Democracy Under Strain: Political Labeling Sparks Free Speech Concerns
The Trump Era 2: A Time of Dramatic and Profound Change
BlackRock CEO Larry Fink Suggests Bitcoin Could Reach $700,000 with Increased Institutional Investment
Leaked Documents Reveal Google's Collaboration with Israeli Defense Forces During Gaza Conflict
Trump to Announce $500 Billion AI Infrastructure Investment
Dear President Donald Trump, I want to assure you that this fraud does NOT reflect the opinions of the majority of decent British citizens.
Olaf Scholz vs. Elon Musk: A Battle Over Common Sense, Which Scholz Appears to Be Missing
EU’s Overregulation Drives Innovation Collapse and Brain Drain
Five Billionaires on Track to Break One Trillion Dollar Wealth Barrier
TikTok Restored in the U.S. Following Trump inauguration
Bill Ackman Praises Social Media Platform X as 'The New Media'
Argentina Achieves Record Trade Surplus in 2024 Under President Milei
Italian Prime Minister Giorgia Meloni Proposes Rome as European Union Capital
France Urges EU to Act on Musk's Political Influence as Tensions Rise
Former Special Forces Blast Defense Ministry for Revealing Sensitive Details
Celebrity Responses to California Wildfires: Charity, Criticism, and Controversy
The Wildfires of Los Angeles: A Devastating Impact on Celebrities and California's Leadership
Tragic Loss: Teenager's Death Sparks Community Reflection in Bedford and London
UK Government Proposes Cap on Resale Ticket Prices to Combat Touts
Greenland's Future Caught in Diplomatic Crossfire Between Trump and Europe
EU Prepared to Lead Support for Ukraine Amid US Uncertainty, Says Estonian Prime Minister
Brompton E-Bike Component Diverted to UK Military Drone Production, Causes Delays
Romanian Gang Convicted of Human Trafficking and Exploitation in Dundee
Persistent Cold Snap Grips the UK: Severe Frost and Snow Disrupt Daily Life
Germany Faces Alarming Rise in Homelessness, New Report Shows
China’s Appetite for Salmon: A Game Changer in Global Seafood Markets
Russian Bots Allegedly Amplified NATO Critic Prior to Croatian Election, Researchers Reveal
Armenia Considers EU Membership Referendum Amid Strained Ties with Russia
French Finance Minister Explores Pension Reform Compromise to Secure Budget Agreement
Armenia Considers EU Referendum Amid Growing Rift with Russia
New Wildfire Ignites in Los Angeles as Region Battles Devastating Blazes
The Espionage Unraveled: A Russian Spy Network's Intricacies in the UK
U.S. Supreme Court Rejects Trump's Bid to Delay Sentencing in Hush Money Case
UK Financial Markets Remain Calm Amid Rising Government Borrowing Costs
Stellantis Achieves UK Electric Vehicle Sales Mandate Amid Factory Closure
TikTok Faces Potential Ban in the United States Amid Security Concerns
Pound Plummets to 14-Month Low Amid Concerns Over UK Borrowing Costs
Tensions Rise Over Planned Pro-Palestinian March in London
Bomb Scare in Central London: Abandoned Car Sparks Panic Near Regent Street
Police Seek Suspect in Antisemitic Incident at Liverpool Street Station
Regulatory Reprimand for London Charity Over Fundraising for Israeli Soldier
The Duchess of Sussex Mourns Devastating Loss of Beloved Rescue Dog
From Chairman to Controversial Politician: Rupert Lowe's Journeys in Business and Politics
Metropolitan Police Halts Pro-Palestine March Near BBC Due to Proximity to Synagogue
×