Royal London has insured the Premdor Crosby Pension Plan through a £16m buy-in, the insurer announced this week.
The transaction covers 181 members of the scheme, which is sponsored by interior design specialist Premdor Crosby. Royal London said the trustee board – chaired by Bestrustees – had used a deferred premium to complete the deal, the first time the insurer had supported such an arrangement.
Bestrustees’ Rachel Tranter said: “From the initial contact with Royal London and all through the process, the Royal London team have been excellent to deal with – responsive, accessible, pragmatic and innovative in their approach to helping the trustees get the deal over the line. The trustees’ adviser team worked extremely well together to ensure a smooth transaction.”
Tom Ashworth, risk transfer director at WTW, added: “The scheme’s success was driven by strong collaboration and clear communication across all parties. A key feature of the transaction was the tailored deferred premium structure.
“Royal London agreeing to such an approach for a smaller pension scheme is especially valuable as it enabled early execution while preserving liquidity and delivering certainty for both Trustees and members.”
The trustees were advised by WTW and Pinsent Masons, while Royal London was advised by Hogan Lovells.
US-owned retailer secures pension schemes with Aviva
Aviva has insured two pension schemes through buy-ins totalling £130m. The schemes are sponsored by an unnamed retailer that is owned by a US parent company.
The buy-ins cover approximately 600 deferred members and 1,200 pensioners and dependants, according to a press release from K3 Advisory, which was the lead adviser on the transactions. K3 said it was also working on another buy-in for a third related pension scheme.
Independent Governance Group (IGG) is the professional trustee for each pension scheme, while Squire Patton Boggs provided legal advice.
Thomas Crawshaw, senior actuarial consultant at K3 Advisory, said: “Completing two full-scheme buy-ins in parallel within six months of our appointment highlights what can be achieved through effective preparation and market engagement.
“The transactions underline the importance of looking beyond price alone, with the focus on post-transaction support and the ultimate member experience playing a central role in the outcome.”
M&G backs £96m buy-in for unnamed scheme
M&G has insured an unnamed UK pension scheme through a £96m buy-in. The company said the deal covered 1,000 members of the scheme, which is sponsored by a US parent company.
M&G said its insurance subsidiary Prudential has “committed to transitioning the scheme to buyout in short timescales”, as well as insuring “residual risks”.
It marks M&G’s seventh transaction in two years, with a combined premium of more than £1.7bn.
Kerrigan Procter, managing director of corporate pensions solutions at M&G, said: “By insuring residual risks and committing to a full buyout by the end of this year, we’ve delivered certainty and long-term security to both the company and the pension scheme members.
“Looking ahead, we will continue to harness the strength of our integrated business model and deep expertise in private markets to design innovative de-risking solutions that respond to the evolving needs of our clients and the broader pensions landscape.”
