The P&O Pension Scheme’s trustee has reached a £440 million buy-in agreement with Rothesay, securing benefits for 5,300 members.
This most recent purchase was preceded by the initial pensioner buy-in, which was organised by Paternoster and acquired by Rothesay in 2011. The remaining participants in the scheme are included in this second buy-in, securing Rothesay’s security for all members.
Barnett Waddingham served as actuarial and risk transfer advisers, while Eversheds-Sutherland provided legal counsel to the trustee. Mercer Ltd. managed administration and investment services, while CMS advised Rothesay.
The transaction was agreed in August 2023 and covers c. 5,300 pension members.
Chair of Trustees Steve Delo says: “We are delighted to complete this transaction with Rothesay, improving security for members’ benefits. It caps many years of hard work by a diligent Trustee Board and brings to fruition the vision that our Senior Pensions Manager, Jane Healy, has pursued with focus and determination since she joined P&O over a decade ago. We also could not have reached this milestone without the support of the Scheme’s sponsor, P&O Steam Navigation Company and its Group parent, DP World.
“There has been a tremendous dynamic between Jane and her team, senior management at DP World, the Trustee Board, our excellent advisers and Rothesay. The Trustee Board would like to thank Barnett Waddingham as both lead adviser on the transaction and scheme actuary, Eversheds-Sutherland as legal adviser and Mercer as investment consultant and administrator. It has been a privilege chairing the Trustee Board during this project and an incredibly busy few months have delivered a great outcome.”
Rothesay business development Róisín O’Shea says: “It is always pleasing when an existing client chooses to work with us again to protect its members’ pensions and we are delighted to secure the benefits of the remaining members of the scheme through this second buy-in. Rothesay’s capital strength, dedicated pricing team and proven ability to execute means we are incredibly well-placed to convert the exciting new business opportunities we are continuing to see in a very buoyant bulk annuity market.”
P&O Steam Navigation Company CEO & MD of DP world European region and director Rashid Abdulla says: “We are delighted that the P&O Pension Scheme has secured benefits for the remaining members of the scheme.
“The company has worked closely with the trustee and its advisers for many years to support the pension scheme and this deal acts to further increase the security of pension benefits for members, whilst reducing risks.”
Barnett Waddingham head of bulk annuities and risk partner Rosie Fantom says: “Reaching this significant milestone for the members is testimony to the hard work of the trustee, company and all the parties who have worked together on the transaction. This buy-in has been completed within nine months of our appointment as risk transfer adviser.
“We guided the trustee through focused preparations and drove a competitive process in an exceptionally busy risk transfer market. As one of BW’s longstanding scheme actuary clients, we were able to identify a market opportunity and help the trustee to respond quickly. We are very pleased to have led the trustee through this important process for the scheme and its members.”
