On the go: The Barloworld UK Pension Scheme has agreed to a £484mn full scheme buy-in with Just Group.
The insurer completed the full buy-in with the involvement of an undisclosed reinsurance partner, which became responsible for 50 per cent of the liabilities.
The transaction covers the benefits of around 3,000 pensioners and 1,800 deferred members.
Mark Evans, director at Independent Trustee Services, and chair of trustees of the Barloworld UK Pension Scheme, said: “We are delighted to have concluded this transaction so smoothly, in spite of some significant challenges along the way.
“Our priority was to secure the optimum protection of benefits for all our members, now and in the long term, and we believe Just Group is extremely well-placed to deliver this.”
Barloworld UK chief executive Quinton McGeer noted that the industrial company’s target was to “remove UK pension scheme risk by fully insuring all members and this transaction comes at the right time with favourable terms”.
“We were prepared to make a significant financial contribution to enable this deal to happen, subject to obtaining attractive pricing and terms, in order to secure a full buy-in that meets both our corporate objectives but also protects the benefits of the scheme members,” he said.
The lead transaction adviser was LCP, with Isio acting as scheme actuary and investment advisers to the trustee. Legal advice to the trustee was provided by Pension Partners and Macfarlanes, while Just Group was advised by CMS.
This latest transaction builds on two previous deals agreed by the Barloworld scheme. The first, with Pension Insurance Corporation, was established in May 2013, and the second, with Scottish Widows, was completed in April 2016.
This article originally appeared on MandateWire.com
