Pension Insurance Corporation (PIC) has insured all of the liabilities in plumbers merchant Wolseley’s pension scheme for around £600m.
The deal improves the financial position of the scheme and increases security for savers while reducing risk for shareholders.
Wolseley Group Retirement Benefits Plan trustee chair David Illingworth said the deal was the next logical step in reducing risk in the scheme.
“Over the past couple of years we have matched an increasing amount of our assets and liabilities and this strategy has now allowed us to take advantage of market conditions and fully insure these liabilities,” he added.
PIC’s head of business development, Mitul Magudia, said low gilt yields have resulted in the majority of insurance transactions being pensioner buy-ins in 2017.
“The bulk annuity market, driven by high levels of demand and competitive pricing, is currently experiencing a period of significant activity,” he added.
The trustees were advised on the deal by Aon and Freshfields Bruckhaus Deringer.
