A trio of bulk annuity transactions have been publicised in recent days, securing the benefits of 4,700 members in deals totalling £450m.
Flooring company Interface Europe has insured its defined benefit pension scheme with Pension Insurance Corporation (PIC) through a buy-in worth £85m. The deal secures the benefits of 1,117 members.
Jo Harris of Dalriada, the sole corporate trustee for the scheme, said: “This was not a straightforward transaction, but with the hard work of scheme advisers, support from the employer, and flexibility from PIC, we believe we’re together providing the best outcome that the market can offer for our members.”
Sam Whalley, lead risk transfer adviser at PwC, added: “This was a collaborative process, showing the value of preparation ahead of time and early market engagement, which meant that a number of complexities were dealt with efficiently. This collaboration and flexibility from all parties allowed the trustee to achieve a great outcome for the scheme’s membership.”
PIC was advised by CMS Cameron McKenna Nabarro Olswang, while PwC was the lead transaction adviser to the trustee. Eversheds Sutherland provided the trustee with legal advice.
Waste company strikes £275m deal with Standard Life
Standard Life has completed a £275m buy-in transaction with the Biffa Pension Scheme, securing benefits for 3,070 members.
The scheme is sponsored by waste management and recycling company Biffa. The deal, which completed in September, covers 1,280 deferred members and 1,790 current pensioners and dependents.
Aon was lead transaction adviser, while Gowling WLG provided legal advice to the trustee board.
Keith Jones, chair of the trustee board, said the deal was “a significant achievement for the scheme”, and praised the collaboration between all parties.
Hannah Brinton, partner at Aon, added: “The process generated significant insurer engagement and competition across the market, culminating in the selection of Standard Life. This included making certain that the trustees’ requirements on services for member experience were an integral part of the deal.”
FirstGroup completes £90m buy-in with Aviva
Transport company FirstGroup’s pension scheme has concluded a £90m buy-in with Aviva, covering more than 500 scheme members.
The process was completed in three months, which LCP said illustrated “the continued competitiveness of the pension risk transfer market, and the ability of schemes with well-run processes to achieve attractive outcomes”.
LCP was lead adviser, while Stephenson Harwood provided legal advice to the trustee board.
Lukshmi Selvarajah of Capital Cranfield and Martin Carroll, co-chairs of the trustee board, said in a statement: “Throughout the process, our priority was to achieve a strong overall outcome, combining value for money and security for our members’ benefits. The close collaboration between the trustee, sponsor and adviser teams was essential in achieving this outcome within an accelerated timeframe.”
Ryan Mangold, chief financial officer at FirstGroup, added: “Since 2020, we have settled about £1.7bn of pension obligations, securing the pensions of former employees, substantially reducing pension risk and realising value for the group.
“Our remaining pension schemes are well funded, and our focus remains on managing them efficiently while maintaining a strong balance sheet to support our capital allocation priorities.”
