Technology company Oxford Instruments has insured its defined benefit (DB) pension scheme through a £213m buy-in with Royal London.
It is the second biggest transaction completed by the insurance company, after last year’s £275m deal with law firm Grant Thornton’s pension scheme.
The Oxford Instruments deal covers the benefits of more than 1,600 members, according to a press release from Royal London.
Aon was the lead adviser on the buy-in, and Leah Evans, risk settlement partner at the consultancy giant, said: “The focused preparation work carried out on member data, asset alignment and transaction decision making resulted in very strong insurer interest and ultimately culminated in a full scheme bulk annuity transaction that was secured on attractive terms for the scheme and its members.”
Steve Warren, chair of trustees for the Oxford Instruments Pension Scheme, said: “The trustee board is delighted to have secured our members’ benefits via the bulk annuity policy with Royal London, achieving a fantastic outcome for the scheme, the sponsor and its members. Many thanks to Royal London and our advisers for helping us to achieve this significant milestone.”
Baljit Khatra, bulk annuity origination lead at Royal London, said the company’s mutual status was “a key deciding factor in what was a highly competitive process”.
Norton Rose Fulbright provided legal advice to the trustee board, while Independent Governance Group provided secretarial and governance support. Royal London was given legal advice by Mayer Brown.
