On the go: Ibstock has completed a £340m buy-in transaction with Just Group representing 50 per cent of total liabilities of its defined benefit pension scheme.
The bulk annuity transaction between the supplier of bricks and concrete products and the insurer will cover over 1,800 pensioners, representing a significant step in the company’s continuing strategy of derisking its pensions exposure, a statement read.
Ibstock Pension Scheme trustees were advised on the transaction by LCP, Buck and legal advisers Addleshaw Goddard, while Pinsent Masons provided legal advice to Just
Rachel Tranter, Director of Bestrustees and the chair of trustees for the Ibstock Pension Scheme, noted that the deal allows the pension fund “to take practical and cost-effective steps to improve the security for all members of the scheme”.
James Forrest, scheme actuary at Buck, said: “Regular dialogue with the trustees and sponsor was key to ensuring all parties were aligned in reaching this common objective.”
He added: “This, combined with ongoing work in relation to data, benefits, and investment strategy, enabled the transaction to move at a fast pace when pricing was favourable.”
David Richardson, group chief executive officer at Just Group, said the deal was a “significant milestone” for the company, as it is its largest single deal to date and marks its 200th transaction.
He added: “We have written over £7.5bn of premiums to secure the benefits of over 30,000 members since we entered the defined benefit derisking market in 2012.”
