Pension Insurance Corporation, the specialist insurer of defined benefit pension schemes, has concluded a £4.3bn buy-in with the Rolls-Royce UK Pension Fund.
The transaction covers the fund’s total remaining liabilities, comprising the pensions of 36,000 people – 15,000 pensioners and 21,000 deferred members.
Liz Airey, chair of trustees at Rolls-Royce UK Pension Fund, said: “We have invested significant time and effort over a number of years to provide our members with exceptional customer service. It was critical for us that we selected an insurer to secure our members’ pensions which is able to continue this.”
LCP acted as lead transaction adviser to the trustees on the deal. The fund received legal advice from Linklaters. Mercer acted as scheme actuary and investment adviser.
James Maggs, partner at Mercer, said: “This transaction marks the culmination of a decades-long journey of steady funding improvements. The key components of this finely-tuned engine – reliable investment growth, meticulous risk management, and timely monitoring – have driven the fund forward with precision and resilience.”
Mitul Magudia, chief origination officer at PIC, added: “It has been a pleasure working on this innovative transaction with the trustees and their advisers.”
Magudia noted that following the announcement of PIC’s acquisition by Athora, which is subject to regulatory approval, he expects to complete more transactions like this in the future.
Comments