Rothesay has completed a £125m full scheme buy-in with the MPS Pension Scheme, which is sponsored by the Medical Protection Society Limited, a member-owned, non-profit organisation providing protection for physicians, dentists, and other healthcare workers.
All 618 members of the scheme, including 444 delayed members and 174 pensioners and dependents, will have their payments guaranteed by the buy-in. This was the first transaction under the scheme, and as the scheme was in surplus, no contribution from the company was required.
Gowling WLG advised the Trustee on legal matters, and Eversheds Sutherland advised Rothesay on legal matters. Isio served as the transaction’s principal broker.
This follows the company’s announcement in March 2024 that it had reached an agreement to buy the £6 billion bulk annuity portfolio of Scottish Widows from Lloyds Banking Group, which included 42,000 underlying policyholders.
Rothesay business development Katie Overton says: “We are pleased to secure the future for the Scheme’s over 600 members. In a very buoyant market, this was a well-prepared scheme which supported the quick and efficient execution of this de-risking transaction. Following a busy first quarter this year, Rothesay continues to see very strong momentum in the pension risk transfer market with an unprecedented pipeline of new business. Our substantial capital resources and proven execution capabilities mean we are very well-placed to capitalise on the significant opportunities we are seeing.”
The Medical Protection Society Limited chief financial officer Richard Pile says: “We are delighted to secure the pensions of all our Scheme members through this transaction. Given improved funding levels and the hard work we put into preparing the Scheme for its end-game, we were able to work quickly with all parties to achieve a great outcome in a busy market.”
Zedra Governance Limited sole trustee Colin Richardson says: “Given the level of competition in the market, this transaction is evidence of the importance of effective scheme preparation. Following the diligent advice and guidance of Isio and Gowling, we gained the interest of 5 insurers, ultimately electing to partner with Rothesay on account of their high-quality offering and good value. The transaction secures the future pension payments and benefits for all Scheme members representing a very positive result in a short time frame.”
Isio senior deal manager Tom Ridley says: “This transaction was executed in good time thanks to the dedication of the Trustee, Company, Rothesay and all their advisers. We are delighted to have supported the Trustee and the Society in delivering on their objectives and protecting the benefits of all Scheme members. It was also pleasing to see such high levels of insurer engagement in a busy market, with over half of all insurers providing a quotation, demonstrating the continued attractiveness of mid-sized schemes who set clear objectives.”