Newspaper publisher Reach has agreed a £270m buy-in for the Trinity Retirement Benefit Scheme with M&G. It is the second bulk annuity the scheme has secured, and covers more than 3,200 members.
Susan Anyan of Capital Cranfield, who chairs the trustee board, said the transaction was the result of “an intensive and highly collaborative process”.
Darren Fisher, Reach’s chief finance officer, added: “This successful transaction is an important milestone for the company and the scheme. We have worked closely with the trustee of the scheme over several years to reach this point and it is a testament to the collaborative approach taken by all parties that we have been able to achieve this positive outcome for both the scheme members and the company’s shareholders.”
Ruth Ward, principal at LCP, which advised the trustee board, said: “A detailed preparation phase before seeking quotations facilitated a smooth broking process, giving all parties confidence that risks are being well-managed, and careful planning for how the scheme’s excellent member service will be maintained post transaction. This resulted in a highly competitive process and an excellent outcome for the scheme and its members.”
DLA Piper provided legal advice to the trustee board. Hymans Robertson and Slaughter and May advised Reach.
Reach, which publishes titles such as the Daily Mirror and the Daily Express, sponsors six defined benefit pension schemes, three of which have insured some or all of their members’ benefits through bulk annuities.
Most recently, the MGN Pension Scheme entered into a £150m buy-in with Just Group in June last year to insure the benefits of 1,300 members.
PIC completes Bodycote deal and eyes buyout
Earlier this month, Pension Insurance Corporation (PIC) announced that it had completed a £60m buy-in for specialist industrial technology company Bodycote’s UK pension scheme.
The transaction secured the benefits of all 680 members of the scheme. PIC senior origination actuary Adam Dann said the company was “working closely” with the trustees and other parties to complete a move to full buyout.
Mark Johnston, a professional trustee at Vidett and chair of the Bodycote UK Pension Scheme’s trustee board, said the scheme had been looking to complete a transaction quickly.
“PIC delivered over and above for us on this,” Johnston said. “The team provided a seamless transaction within accelerated timeframes. Its flexibility and focus on first-class customer service were some of the reasons why we chose to transact with them.”
Tom Ridley, senior deal manager at Isio, said: “Transactions like this can be notoriously difficult to navigate, especially when managing illiquid holdings, but the close partnership between the trustees, company, advisers, and PIC helped to navigate the challenges.”
Isio advised the trustee board on the buy-in, with Pinsent Masons providing legal insight. PIC was advised by CMS.
Leasing firm insures DB scheme for £7m
Separately, Isio and PIC also worked together on a £7m buy-in transaction for the Black Arrow Group Ltd Pension and Assurance Scheme, securing the benefits of 61 members. The scheme’s sponsor, Black Arrow Group, is an asset financing and leasing company.
In a press release, Isio said the buy-in covered all remaining uninsured members of the pension scheme. The consultancy has been working with the trustees and sponsor on a derisking strategy for several years.
Jon Sharp, director at Birchmoor and an independent trustee to the Black Arrow Group scheme, said: “The transaction shows that, even in a busy market, it is possible for schemes of this size to engage constructively with insurers and secure improved long-term security for members’ benefits.”
