Buy-ins and buy-outs


Pension schemes are increasingly exploring how they can best manage and / or transfer the risks associated with their DB pension arrangements to an insurance company in order to de-risk and safeguard benefits.

The last four years have seen an unprecedented increase in buy-in and buy-out activity, and 2018 is widely predicted to be a bumper year for the bulk annuity market, with the level of competition, pension plan funding and pricing all at attractive levels.

We have significant experience of advising employers and trustees on buy-ins and buy-outs. We advised on 15 separate bulk annuity transactions in 2017 of all sizes and structures with all the major insurers at an aggregate deal volume of around £2.4bn, a market share of over 20%. We have done at least one transaction with every major insurer since December 2016, including the two biggest deals of 2017 for Rothesay and Canada Life. This means that we are able to advise our clients on the most favourable terms and the pitfalls to avoid.

Read our guide for trustees on buy-ins, buy-outs and longevity transaction.

Recent experience

  • Advising the Trustee of the Siemens Benefit Scheme on their £1.3bn buy-in with PIC
  • Advising the Trustee of the Royal Mail Pension Plan, Post Office Limited section, on their £450m buy-in with Rothesay Life
  • Advising the Trustee of the Tullet Prebon Pension Scheme on their £270m all-risks buy-in with Rothesay Life
  • Advising the Trustee of the Cancer Research Pension Scheme on their £250m buy-in with Canada Life
  • Advising the Trustee of the Blackwell’s Pension Fund on the transition of the buy-in transacted in 2015 to a full buy-out with PIC and a wind-up of the scheme which completed in June 2017
  • Advising the Trustees of the Northern Bank Pension Scheme on a £680m buy-in with Prudential, putting in place a collateralised security structure
  • Advising the trustees of the Smiths Industries Pension Scheme on their £210m buy-in with Canada Life.