Insurance company Just Group has announced a pair of bulk annuity deals in the past week, securing the benefits of more than 5,000 members across two defined benefit (DB) pension schemes.
Today (2 June), the company revealed a £160m buy-in deal to insure the Hartwell Pension Plan (1971), sponsored by vehicle distribution company Hartwell. The deal covers 1,689 pensioners and 672 deferred members.
Just said it was targeting buyout within 18 months and was taking on guaranteed minimum pension equalisation work itself to aid the transition.
The trustees and their advisers used Just’s pricing tool, Beacon, to ensure a transaction was possible in the timeframe required. Kishan Radia, a business development manager at Just, said the process “highlights the importance of early affordability testing and decisive execution”.
“In situations where covenant concerns and corporate timelines are aligned, speed and collaboration are critical,” Radia added.
Kevin Kenneally, client director at Vidett and professional trustee to the Hartwell scheme, explained: “Hartwells and the trustees have a long history of close collaboration and achieving this risk transfer was the culmination. Having a sponsor that was engaged with exploring all risk transfer options, as well as funding the transaction, achieved a really positive outcome for the plan and its members.”
Georgina Forbes, company secretary and head of legal services at Hartwell, added: “The economic landscape meant that it was a relatively cost-effective time to de-risk and allows the company to enjoy the certainty that all member benefits are secured, while also being free to focus exclusively on its core business activities.”
Isio was the lead adviser on the buy-in, with CMS providing legal advice.
Church of Scotland strikes £220m buy-in deal
Separately, last week Just announced a £220m buy-in for the Church of Scotland Pension Scheme for Ministers and Overseas Missionaries. This deal insured the benefits of 2,800 pensioners and 700 deferred members, according to a press release from the insurer.
The deal marked the third time Just Group had worked with the Church of Scotland Pension Trustees to insure schemes, following a pair of buy-ins completed in December 2024.
According to Just, the previous transactions meant the trustees “felt confident in selecting Just again for this scheme”.
Nikki Ayriss, partner at LCP, added: “It was important for the trustees to balance a range of objectives where cost was not the only focus. Working through from the initial concept to transacting with Just involved all parties working closely together to get an attractive outcome for the trustees, the church, and the members.”
In a statement, Lin Macmillan and Raymond Martin, chair and vice chair of the trustees respectively, said: “Finding a competitively priced solution to reduce pension risk was important to the trustees, but working with an insurer with a focus on sustainability and member experience was also imperative.”
LCP was the lead transaction adviser, with Addleshaw Goddard and Burness Paull providing legal advice.
