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 five years have seen an unprecedented increase in buy-in and buy-out activity and, despite market uncertainty due to the political landscape, 2019 was another record-breaking year for the industry and we are delighted to have advised on some of the most significant transactions. These included 13 separate bulk annuity transactions, with an aggregate deal value of £12.6 billion and representing a quarter of the market in 2019. We also advised on the third biggest longevity swap ever transacted in the UK, for the trustees of the HSBC Bank (UK) Pension Scheme.
Since 2016, we have done at least one transaction with every major insurer, including the two biggest deals of 2018 for PIC and Canada Life, and 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 latest guide for trustees on buy-ins, buy-outs and longevity solutions.
- Advising the Trustee of HSBC Bank (UK) Pension Scheme on a £7bn longevity swap with PICA (the second largest ever deal for a UK pension scheme)
- Advising the trustees of the Smiths Industries Pension Scheme on two buy-outs with Canada Life for £210m and £176m respectively
- Advising Groupe PSA (company) on the Peugeot Advanced Pension Plan’s £140m buy-in with Scottish Widows
- Advising the trustees of the Reuters Pension Fund on their £625m buy-in with Canada Life, the insurers largest ever deal
- 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.