Aon Hewitt Risk Settlement Group. Bulk Annuity Compass. The complete solution for bulk annuities. Risk. Reinsurance. Human Resources.

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1 Aon Hewitt Risk Settlement Group Bulk Annuity Compass The complete solution for bulk annuities Risk. Reinsurance. Human Resources.

2 Introducing Bulk Annuity Compass Aon Hewitt s online bulk annuity broking platform, Bulk Annuity Compass, has been developed based on our extensive experience of the bulk annuity market to help you avoid missed opportunities and to make sure you are positioned to get the best possible pricing. It combines Aon Hewitt s technological capabilities with our insights and knowledge of providers, which means that we will approach the market at the right time and in the right way to get the best possible outcome for your scheme. The current bulk annuity market of 10Bn 15Bn each year is dwarved in the context of over 2,000Bn of UK pension scheme liabilities. Even though market capacity is likely to increase over time, we are already seeing insurers becoming more selective about the schemes they will quote for and give the best terms to. Schemes on the Bulk Annuity Compass platform will be in a stronger position to take advantage of market opportunities in this environment. About Aon Hewitt Aon Hewitt empowers organisations and individuals to secure a better future through innovative talent, retirement and health solutions. We advise, design and execute a wide range of solutions that enable clients to cultivate talent to drive organisational and personal performance and growth, navigate risk while providing new levels of financial security, and redefine health solutions for greater choice, affordability and wellness. Aon Hewitt is a global leader in human resource solutions, with over 30,000 professionals in 90 countries serving more than 20,000 clients worldwide. For more information on Aon Hewitt, please visit: aonhewitt.com Level 1 Level 2 Level 3 Trigger Monitor Engage If pricing is not quite right, Aon s trigger-based online platform allows a two-way information flow with insurers allowing them to bid for your scheme until your desired price is achieved Daily online tracking for your scheme, allowing you to decide the right time to transact A streamlined, yet personalised approach to broking. Our bespoke positioning of your scheme and interactive online platform deliver the optimal blend of efficiency and insurer engagement Transact Access to greater certainty and faster implementation, through: 1. Price-lock against specific assets or indices, reducing the risk of adverse market movements 2. Comprehensive due diligence of financial and administrative capabilities 3. Opportunity to utilise pre-agreed enhanced contracts

3 Bulk Annuity Compass schemes benefit from maximum insurer engagement. Only schemes with a realistic chance of transacting will progress to the next level and onto the online Bulk Annuity Compass broking platform. This means that insurers recognise that we are not wasting their time, and you do not waste time and money at a point where a transaction is not realistic. Bulk Annuity Compass has been endorsed by insurers, and benefits from a unique combination of innovative solutions, including: A guided decision-making and monitoring process based on insurer pricing so you approach the market at the point where there is a strong chance of transacting Fewer missed opportunities via Aon s online Bulk Annuity Compass broking platform, delivering greater governance and allowing you to secure the highly competitive commercial terms Greater certainty during transaction as a result of price certainty, comprehensive due diligence and pre-negotiated legal annuity contracts Preparing the way Planning is key. We will make sure that you fully understand the implications of a bulk annuity, including the impact on: Funding Residual investment strategy Company accounting We will also identify any preparatory work that needs to be undertaken in relation to the scheme's data and/or benefits, and help you set up appropriate governance processes. Supporting your journey A bulk annuity transaction requires careful planning and attention to detail in the execution. We understand that trustees and sponsors need clarity, in particular when they will need to make decisions and what advice they will receive to help them make those decisions. With clear decision and break points after each stage, you will have confidence that key milestones will be met and you are committed only until the end of each stage, should you decide not to proceed further. Project management is also critical, and we have tried and tested processes and project plans that ensure that all parties know what they need to deliver by when. Level 1 Aon s Risk Analyzer allows you to track online pricing in the market on a daily basis to give you a bulk annuity cost, tailored to your scheme s benefits. It does this by using: Pricing feeds from across the insurance market; and Aon s unique experience of over 10Bn of risk settlement transaction in each of the past three years. 2,150m 2,100m 2,050m 2,000m 1,950m 1,900m Monitor This cost-effective approach means you can make an informed decision on when the time is right to engage actively with the market. Central insurance price Trustee target 1,850m 1,800m 1,750m 01 Jan 01 Feb 01 Mar 01 Apr 01 May 01 June 01 July

4 Level 2 Engage Aon is the largest insurance broker in the world and the strong relationships we have at senior level with all insurers give us valuable insight, which informs our personalised positioning of Bulk Annuity Compass schemes. This is complemented by our highly robust and streamlined online auction process, which makes sure that the correct benefits are secured and the best terms obtained as efficiently as possible. Through the Bulk Annuity Compass broking platform you will approach the market at the optimal time for you. That is, close enough to your target price that you will receive enhanced insurer engagement, while making sure that you do not miss opportunities. Bulk Annuity Compass Benefit spec. Benefit specification Data Member data Insurer Query log queries Request for Client specific quotation quotation requirements Quotation Submit quotation The platform facilitates interactive and secure engagement with insurers in the market. Comprehensive details of the scheme benefits and membership are held on the platform, which allows insurers to provide fully transactable and competitive pricing for your scheme.

5 Level 3 Trigger/Transact Where a trigger-based approach is used, Aon Bulk Annuity Compass allows a two-way transfer of information with insurers this means that you will know as soon as your target price has been reached, and with much greater certainty. As you enter the critical transaction phase, you will have access to: Bespoke positioning of your scheme Aon Online platform allowing two way information sharing, delivering greater visibility, governance and control while helping secure the highly competitive terms Bulk Annuity Compass platform Insurers Ability to provide live pricing updates for your scheme Price lock Clarity over price movements during implementation and greater certainty in volatile markets. Due diligence Covering insurers' financial strength and administrative capabilities, this is uniquely provided by Aon Hewitt as part of our standard service, utilising input from independent specialists (AKG, Cazalet Consulting, Agile Consulting). Pre-agreed Pathway legal contracts Cutting transaction time down to a matter of days and allowing comparison of terms ahead of provider selection developed in conjunction with Eversheds LLP. Aon s Bulk Annuity Compass gives you greater certainty than ever before to capitalise at the right time and on the right terms to maximise the value for your scheme Confidence that opportunities will not be missed Trustees

6 Further information and contacts For more information on Bulk Annuity Compass, or Aon Hewitt s wider risk settlement capabilities and offerings, please visit: aonhewitt.co.uk/risksettlement Alternatively please contact your usual Aon Hewitt contact, or: John Baines +44 (0) john.baines@aonhewitt.com Paul Belok +44 (0) paul.belok@aonhewitt.com Dominic Grimley +44 (0) dominic.grimley@aonhewitt.com Michael Walker +44 (0) michael.walker.3@aonhewitt.com Martin Bird +44 (0) martin.bird@aonhewitt.com About Aon Hewitt Aon Hewitt empowers organisations and individuals to secure a better future through innovative talent, retirement and health solutions. We advise, design and execute a wide range of solutions that enable clients to cultivate talent to drive organisational and personal performance and growth, navigate risk while providing new levels of financial security, and redefine health solutions for greater choice, affordability and wellness. Aon Hewitt is a global leader in human resource solutions, with over 30,000 professionals in 90 countries serving more than 20,000 clients worldwide. For more information on Aon Hewitt, please visit: aonhewitt.com Follow Aon Hewitt on Sign up for News Alerts:

7 About Aon Aon plc (NYSE:AON) is a leading global provider of risk management, insurance brokerage and reinsurance brokerage, and human resources solutions and outsourcing services. Through its more than 72,000 colleagues worldwide, Aon unites to empower results for clients in over 120 countries via innovative risk and people solutions. For further information on our capabilities and to learn how we empower results for clients, please visit: Aon plc. All rights reserved. The information contained herein and the statements expressed are of a general nature and are not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information and use sources we consider reliable, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. Copyright Aon Hewitt Limited. All rights reserved. Aon Hewitt Limited is authorised and regulated by the Financial Conduct Authority. Registered in England & Wales. Registered No: Registered Office: The Aon Centre, The Leadenhall Building, 122 Leadenhall Street, London, EC3V 4AN. Follow us on Risk. Reinsurance. Human Resources.