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 six years have seen an unprecedented increase in buy-in and buy-out activity and 2020 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, five over £500m.
Since 2016, we have worked on at least one transaction with every major insurer including Rothesay Life, L&G, Canada life and Aviva in 2020. This means that we are able to advise our clients on the most favourable terms and the pitfalls to avoid.
Transactions over £100m which the team advised on in 2020 are set out below:
Read our latest guide for trustees on buy-ins, buy-outs and longevity solutions.
- Advising the trustees of the Mowlem (1993) Pension Scheme on a £150m PPF+ buy-out transaction, securing the benefits of over 360 deferred members and 650 retirees.
- Advising the trustees of the National Grid UK Pension Scheme on a £800m buy-in with Rothesay Life.
- Advising RockRose Energy (Marathon Services (GB) Limited Pension and Life assurance scheme) on a £610m buy-in Rothesay Life.
- Advising the trustees of the Siemens Benefits Scheme on a £530m buy-in with L&G.
- Advising the trustees of the Smiths Industries Pension Scheme on a £146m buy-in with Canada Life.
- Advising the trustees of the TI Group Pension Scheme on a £142m buy-in with Aviva.
- 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.