PIC closes fifth Vesuvius buy-in

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26 Jun 2017

Pension Insurance Corporation (PIC) has completed a fifth insurance buy-in with steel and foundry-focused engineer Vesuvius’ defined benefit (DB) pension scheme.

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Pension Insurance Corporation (PIC) has completed a fifth insurance buy-in with steel and foundry-focused engineer Vesuvius’ defined benefit (DB) pension scheme.

Pension Insurance Corporation (PIC) has completed a fifth insurance buy-in with steel and foundry-focused engineer Vesuvius’ defined benefit (DB) pension scheme.

PIC now covers more than £400m, or around 50%, of the liabilities in Vesuvius’ retirement scheme since striking its first deal with the trustees five years ago.

Further deals between the two parties could be on the way. The aim for Vesuvius’ trustees is to fully insure the defined benefit (DB) scheme and so they have struck an open-ended agreement which allows for future tranches to be added to the de-risking deal if agreed conditions are met.

Allan Course, chair of the trustees, said the deal builds on the four previous transactions with PIC and further improves and increases security for the scheme’s members.

PIC senior actuary Tristan Walker-Buckton describes Vesuvius’ trustees as forward thinking and proactive in managing their pension risk.

“They were one of the original trustee boards to have agreed terms for an automatic roll-in of future pensioners and are again one of the first to conclude a similar agreement under Solvency II,” he added.

“We look forward to a long partnership with the trustees.”

PIC had insured £22.6bn of pension scheme liabilities by the end of 2016 and has completed several other deals since. These include the £200m buy-in of 3i’s retirement scheme in May and February’s £130m de-risking deal with engineering group TI.

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