Pension Insurance Corporation and Just Group have completed full buy-ins for small pension schemes, while Isio looks forward to 2025’s bulk annuity market.
It has insured 103 members of the General Council of the Bar Pension and Life Assurance Fund for £20m using Mosaic, which it launched in April to serve schemes with less than £100m in assets.
The deal was completed and signed within 10 weeks of PIC receiving the fund’s data, the insurer said in a press release. Another transaction using Mosaic is expected to be completed by the end of the year.
Pavan Bhardwaj, chair of trustees for the pension scheme, said: “We are very pleased to have completed a full scheme buy-in for the fund, a significant step, which will enhance the security of all members’ benefits and remove uncertainty for the General Council of the Bar.
“PIC’s Mosaic framework allowed us to work through the process efficiently as sole corporate trustee in order to capitalise on an improved funding position and achieve an excellent result for members.”
Andrew Simpson, risk transfer partner at Mercer, said: “The collaborative approach demonstrated by the trustees and company together with competitive pricing and Mosaic process delivered by PIC meant that the fund was able to achieve this important milestone within a set timeframe.”
Just Group insures milling company scheme for £4m
Earlier this week, Just Group announced that it had insured the G R Wright & Sons Ltd Pension & Assurance Scheme for approximately £4m.
The full scheme buy-in covers all 13 members of the pension scheme, which is sponsored by milling company G R Wright & Sons. The company provided an additional contribution in order to support the deal.
Bob Jenkinson, deal lead at Broadstone, said: “The meticulous preparation for this transaction meant that once we had received pricing, via Just’s Beacon price monitoring service, the trustees had the reassurance of the accuracy of the benefits they were securing and that the additional employer contribution required was affordable.
“Once the contribution was confirmed as in range, the employer was keen to move rapidly to secure the position and I am pleased that, working with Just, we were able to do so in a matter of weeks.”
Huw Davies, professional trustee at Pi Partnership, said the pension scheme’s trustee board were impressed with the speed and efficiency of the transaction.
“Buy-ins are now well trodden ground for trustees, advisers and insurers, and it is good to see costs and execution times coming down while still delivering greater benefit security for members,” he said.
Isio forecasts vibrant bulk annuity market for 2025
“Non-pricing factors” are becoming increasingly important for pension scheme trustee boards when considering an insurance transaction, according to consultancy group Isio.
The bulk annuity market will “remain healthy” next year and may be boosted by “further insurers entering the market”, the company said in a press release.
While attractive pricing has helped pension schemes of all sizes access the insurance market in 2024, Isio said other factors such as administration and service quality were becoming increasingly important in a competitive market.
Karen Gainsford, director at Isio, said: “This year has shown us the adaptability and continued buoyancy of the bulk annuity market.
“The addition of new insurers has created more competition for deals among insurers and greater opportunities for schemes of all sizes…
“Trustees are increasingly focused on non-pricing factors, and it has never been more important for insurers to meet a scheme’s unique needs.”
Gainsford’s colleague Steve Robinson, partner, added that pension schemes with “a clear view on readiness and efficient governance” were best placed to secure good deals with insurance companies.
