On the go: Premaberg Holdings, a manufacturer of separation and filtration systems, has completed a £5m annuity buy-in with Just Group for its Premaberg Holdings Limited Retirement Benefits Plan.
The deal covers all remaining defined benefit liabilities for the plan’s 50 members, and was completed with the aid of Mercer’s streamlined quotation service, which allowed the plan to complete the transaction within four days of Just Group’s final quotation.
“We’re delighted to have secured our members’ DB pensions through this bulk annuity transaction,” Jo Richardson, chair of trustees, said.
“The ability to regularly monitor actual insurer pricing was invaluable, allowing us to quickly take advantage of improved market pricing earlier this year and transact firmly within our price trigger.”
Peter Jennings, business development manager at Just Group, added: “Using an efficient smaller scheme broking approach such as Mercer’s streamlined quotation service, coupled with an open and collaborative working relationship with the trustees and sponsor were key to generating our engagement and delivering a successful transaction.”
Pensions Expert has reported severally on the trend in the bulk annuity market being away from the large, multi-billion pound deals that broke records in 2019 and toward a proliferation of transactions involving smaller schemes.
Willis Towers Watson predicted last month that the total value of bulk annuity transactions will fall to £20m-£25m, half the heights reached in 2019, while in May Pensions Expert reported on research by LCP suggesting that small scheme buy-ins and buy-outs could jump by 25 per cent this year.
Commenting on the Premaberg plan deal, Ruth Ward, Principal in Mercer’s Risk Transfer Team and lead consultant on the deal said: “This deal clearly demonstrates that smaller schemes can and do achieve successful bulk annuity transactions, despite continued high demand from much larger schemes.”
“The trustees (including PAN Trustees) completed thorough preparation while we monitored buy-in pricing via our streamlined quotation service, ultimately allowing the plan to complete the transaction within just four business days of receipt of Just’s final quotation. A great result all round.”
