Engineering company NG Bailey has secured a £155m buy-in for its defined benefit (DB) pension scheme with Pension Insurance Corporation.
The deal means the entire DB scheme is now secured through buy-ins. According to its most recent annual report for the 12 months to 28 February 2025, NG Bailey’s DB pension scheme had £251m in assets and £217m in liabilities.
Jon Sharp, a director at pensions advisory firm Birchmoor and trustee for the NG Bailey Pension and Life Assurance Plan, said Pension Insurance Corporation “went above and beyond to provide competitive solutions that exceeded our expectations throughout the process”.
XPS was the transaction adviser to the trustee board, while EY advised NG Bailey. Walker Morris provided legal advice to the trustees, while Stephenson Harwood acted for the company and Slaughter and May advised Pension Insurance Corporation.
Deepash Amin, head of new business strategy at the insurer, added: “The trustee board and its advisers were clear on their objectives and well prepared, enabling a smooth and quick transaction. Member outcomes were a key priority for the trustees, and we’re proud to have been selected in large part due to our focus on customer service for our policyholders.”
‘Non-price factors’ influencing insurer choice
Customer service is becoming an increasingly important factor for trustee boards when assessing insurers in a competitive bulk annuity market.
Insurance companies are investing in technology with a view to supporting improvements to administration and the member experience, according to Imogen Cothay, partner at LCP. She added: “This will benefit schemes of all sizes, with more efficient journeys to buyout, and a boost in online functionality for members as digital engagement becomes the norm.”
Claire Altman, managing director for bulk annuities and individual retirement at Standard Life, agreed that trustee boards were “increasingly prioritising non-price factors to secure long-term value for members”.
She continued: “This presents a clear opportunity to differentiate through thoughtful preparation and targeted engagement, focusing on insurers whose capabilities match the scheme’s size, structure, and goals.
“At the same time, the ability to move swiftly to buyout is becoming a critical factor. With the backlog of buy-in transactions awaiting conversion to buy-out rising from under 100 to 250 between 2023 and 2024, trustees are placing greater value on insurers that offer a clear and efficient path to full settlement.”
LCP has forecast a record-breaking year for the bulk annuity market, with £55bn in new business expected to be written in 2026.
