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The Actuary The magazine of the Institute & Faculty of Actuaries

Mark Wood steps down as Paternoster CEO amid restructure and capital investment

Paternoster, the pension buy-out firm has announced a £5 million injection of new shareholder capital into the business as part of a restructure which also sees 24 jobs cut and CEO Mark Wood step down to the deputy chairman role.

The move will allow the firm to restart writing new business "...once it has raised further money or when there is significant improvement in the economic outlook". It is also hoped the capital injection will help it to feature in the rapid growth of the longevity-only risk transfer market.

Paternoster stopped writing new business in the spring and the firm’s headcount has now been trimmed to 106 while the market for defined-benefit pension scheme buy-outs remains subdued.

Mark Wood stays on in a deputy chairman role and is replaced as by the firm’s commercial director Ed Jervis. The new CEO commented: ‘As the risk of credit defaults diminishes and asset values improve at the same time as underlying corporate cash flows strengthen, so pension scheme buyouts will again become viable and demand must be expected to soar. These conditions will also be conducive to raising further capital.’