Legal & General has completed a £1.1 billion buy-in with the SCA UK Pension Plan, securing the benefits of 5,900 retirees and 3,600 deferred members.
The sponsoring company, Essity Holding UK Limited, is part of the Essity Group and employs around 1,600 people in the UK, owning brands including TENA, Cushelle, Tork, Plenty, Velvet and Bodyform.
Lane Clark & Peacock (LCP) served as the Plan’s trustees’ primary transaction adviser. Slaughter and May provided legal counsel, while Muse Advisory served as pensions manager. Willis Towers Watson and Clifford Chance advised the Sponsor. CMS Cameron McKenna Nabarro Olswang LLP advised Legal & General on legal matters.
According to L&G, this transaction enables the Plan to align its investment strategy with Legal & General’s pricing, establishing a price lock and matching assets.
Legal & General Institutional Retirement CEO Andrew Kail says: “We are very pleased to have agreed this buy-in today with the SCA UK Pension Plan, allowing us to deepen our existing relationship with the client and create greater security for its members. We are continuing to see an acceleration in demand across the sector with c£1.4 trillion of DB pension scheme assets sitting on UK company balance sheets. Our long-standing relationships with clients, including through our Asset Management division, allows us to support pension schemes through their de-risking journey, working in collaboration with clients such as the SCA UK Pension Plan to maximise outcomes for Plan members and Trustees.”
SCA UK Pension Plan chair and independent trustee director Carol Woodley says: “I’m delighted that the Trustees, Essity, Legal & General and our advisers have been able to work together to complete this transaction. It is good news for our members and increases the level of security that their pension benefits will be paid in full. The outcome was only possible in the time frame as a result of the great team effort between everyone involved.”
Lane Clark & Peacock LLP partner and lead transaction adviser Clive Wellsteed says: “One of the most important decisions in today’s market is how to approach and engage with insurers to best deliver the transaction objectives. The bespoke process followed here did exactly that and delivered highly competitive pricing and full tailoring to the Trustee’s and Sponsor’s timeline and desired terms.