FTSE 100-listed engineering company Smiths Group has completed a £760m buy-in deal with M&G, meaning the company’s defined benefit (DB) pension scheme is now fully insured.
The transaction covers the benefits of more than 10,000 members of the Smiths Industries Pension Scheme and was completed earlier this month without the need for additional capital from the sponsor.
It is the fifth bulk annuity deal the pension scheme has completed, following previous transactions with Canada Life and Pension Insurance Corporation.
The Smiths Industries Pension Scheme had £1.3bn in assets and just under £1.2bn in liabilities as of 31 July 2025, according to Smiths Group’s most recent accounts.
According to M&G, the scheme’s trustees selected the insurer based on its strong administration and member services.
Nicholas Godden, chair of the trustee board, said: “This buy-in with M&G reflects many years of careful planning and strong collaboration between the trustees, Smiths Group, and our advisers.
“On behalf of my fellow directors, I would like to thank everyone involved in making the transaction possible, including all of our advisers and the Smiths Group in-house pensions team. Their collective expertise, commitment and support have been central to achieving this significant step in the scheme’s journey.”
Simon Powell, group pensions director at Smiths, added: “The successful completion of these deals is a testament to the expertise, diligence and collaboration of the Smiths pensions team, our trustees and everyone involved. It reinforces our ongoing commitment to protect the long-term security of our members’ benefits and ensures long-term financial stability for Smiths.”
Hymans Robertson was risk transfer adviser, while Sackers provided the trustee board with legal advice.
In a press release, Smiths Group also revealed that it had completed a buyout for its other main DB scheme, the TI Group Pension Scheme, in May, with more than 15,000 members now receiving benefits from a quartet of insurers. This scheme had £823m in assets at the end of July 2025.
“These transactions are a key part of Smiths’ ongoing strategy to de-risk its legacy obligations and come during an important year for the company,” Smiths Group stated.
Julian Fagge, Smiths Group’s chief financial officer, added: “The completion of these transactions marks an important milestone in enhancing our balance sheet and demonstrates our commitment to the responsible management of our legacy obligations.
“These transactions provide greater financial security for our scheme members, remove pension risk and future cash funding requirements, and reduce balance sheet volatility. This improved financial flexibility strengthens free cash flow and, together with the completion of our strategic transformation, further supports our repositioning as a focused industrial engineering company.”
Aviva and Just complete sub-£25m deals
Earlier this month, Aviva and Just Group announced small bulk annuity transactions as the sub-£100m end of the market remains vibrant.
Aviva’s £24m buy-in deal was with an unnamed pension scheme and covered 240 members. The insurance company was able to incorporate GMP equalisation into its quote, according to a press release. Gallagher was the risk transfer broker while Pinsent Masons provided legal advice.
Just Group, meanwhile, announced a £4m buy-in with Combat Stress’s legacy DB scheme. The deal completed in May and covered 39 members of the pension scheme. Combat Stress is a charity providing mental health support to ex-military staff.
Barnett Waddingham was the risk transfer adviser, and legal advice was provided by Burges Salmon.
