Risk watch: A roundup up of the latest derisking transactions, including the Mitchells & Butlers scheme’s £650m full buy-in with Legal & General and the AvestaPolarit scheme’s bulk annuity transaction with Rothesay.
Mitchells & Butlers secures £650m buy-in
The Mitchells & Butlers Executive Pension Plan has completed a £650m full buy-in with Legal & General Assurance Society. The deal, which secures the benefits of all scheme members, is the plan’s first pension risk transfer transaction after two years of preparation and price monitoring. L&G previously had a relationship with the plan in its capacity as an asset manager for the defined benefit schemes. Legal & General Investment Management also handles the assets for the plan’s defined contribution section. The trustees were advised on the transaction by XPS Pensions Group and legal advice was provided by Gowling WLG. Macfarlanes provided legal advice to L&G.
This article originally appeared on MandateWire.com
AvestaPolarit Pension Scheme agrees buy-in
The circa £458m AvestaPolarit Pension Scheme has agreed a £390m full buy-in with Rothesay ahead of an expected buyout. The deal covers nearly 1,000 DB scheme members including 426 pensioners and 500 deferred pensions, and follows an initial pensioner buy-in in 2020. Aon acted as the lead adviser on the deal, while legal advice was provided to the scheme by DLA Piper and to Rothesay by Linklaters. Additional strategic advice was given by Cardano.
This article originally appeared on MandateWire.com
Dinkie Heel scheme completes buy-in ahead of wind-up
The circa £5.1m Dinkie Heel Retirement Benefits Scheme has agreed a buy-in with insurer Aviva. According to a London Stock Exchange announcement, the transaction will provide long-term security for the benefits of all the scheme’s members and also remove longevity, investment and funding risks. It is expected that the buy-in deal will convert to a full buyout in due course without the need for any additional financial support from the company. The scheme is expected to begin formally winding up as soon as possible, once data cleansing and guaranteed minimum pension equalisation is complete.
This article originally appeared on MandateWire.com
