The De La Rue pension scheme has completed a £320m buy-in with Scottish Widows, covering the liabilities of around 1,400 pensioner members.
Hymans Robertson was the lead transaction adviser, with legal advice to the trustee provided by CMS.
The trustees of the scheme said this buy-in represents a significant step in the scheme’s de-risking journey, helping the trustee improve the security of members’ benefits and to reduce the risk to the sponsoring company.
Over the past few years there has been a significant increase in buy-in activity with the improved funding position of many DB schemes driving activity in this area.
Hymans Robertson partner Richard Wellard says: “We are very pleased to have helped the trustee successfully secure their first buy-in and take this substantial step on their journey.
“We worked closely with the trustee to clearly define their de-risking strategy and identify an opportune time to approach the bulk annuity market. The result was a highly competitive broking process, with Scottish Widows presenting a compelling and tailored proposition.”
Scottish Widows were able to complete the transaction in around four weeks, after being offered exclusivity on the deal.
Mike Roberts, partner at PAN Trustees and professional trustee chairman of the scheme adds: “This buy-in is a major step in the scheme’s de-risking strategy and significantly improves the security of all members’ benefits.
“Our advisers, together with the support and collaboration of De La Rue and their advisers, were instrumental in delivering this result for the scheme, and we valued Scottish Widows’ willingness to work in partnership with us to meet our objectives for the project.”
