The transaction is structured with a consortium led by private equity firm CVC Capital Partners and US insurers Prudential Financial Inc, alongside Goldman Sachs Alternatives, MS&AD Insurance Group, and other long-term institutional investors. Standard Life will contribute £500m, funded through its yearly excess cash generation, with the consortium providing the remaining £1.5bn.

The insurer will hold the controlling voting stake (51%) and full operational control. Subject to regulatory approval, the additional backing will allow Standard Life to compete for the UK’s largest and most complex defined benefit pension transfers.

Between £350bn to £550bn of UK pension assets are projected to be de-risked over the next decade, with large schemes expected to drive the majority of transaction volume.

Andy Briggs, group chief executive at Standard Life, said: “We are delighted to announce the expansion of our PRT business in partnership with a group of internationally recognised financial institutions, who are committing global capital into the UK PRT market.

“For over 200 years, Standard Life has supported people across the UK to plan for and secure their retirements, and this focus and commitment remains central to our strategy today.

“By bringing together our comprehensive PRT capabilities with our partners’ specialist private markets capabilities and significant capital resources, coupled with a trusted and well-known brand in Standard Life, we will be able to offer trustees and sponsors for the largest pension schemes an alternative to secure the pensions of their members across the UK.

“This partnership further accelerates Standard Life’s vision to become the UK’s leading retirement savings and income business.”