A quartet of transactions have been announced this week securing the defined benefit pensions of nearly 4,000 people.
The two schemes – the Halma Group Pension Plan and the Apollo Pension and Life Assurance Plan – are sponsored by safety equipment specialist Halma and its subsidiary Apollo.
The buy-in transactions were run concurrently, with LCP as adviser, Mercer providing investment advice and Squire Patton Boggs giving legal advice.
David Fink, partner at LCP, said running the two buy-in processes together helped the trustees secure attractive pricing in a busy insurance market.
The increased scale of the combined deal also helped the trustees sell off illiquid assets on the secondary market at better prices, Fink added.
Joe Haswell, bulk purchase annuity transaction manager at Standard Life, said: “The plans came to market with clear objectives and well-prepared data and benefits, which laid the groundwork for an effective outcome.
“The bulk annuity market continues to be busy, and as the end of the year fast approaches, solid preparation like this remains key to the efficient production of quotes in a competitive market.”
Debt collection company’s buy-in includes active members
Pension Insurance Corporation has completed a £190m buy-in for the Atradius UK Pension Scheme, securing benefits for more than 770 retired, deferred and active members.
Atradius is a credit insurance and debt collection firm and is owned by a Spanish insurance company.
The buy-in includes benefits accrued to date for the 66 current active members of the scheme.
Trustee board chair Michael Thomas said the final transaction went “above and beyond the objectives we set” to provide long-term security for scheme members.
Karen Gainsford, director at Isio, which advised on the transaction, said: “This buy-in required innovative structuring to ensure it remains futureproofed and to achieve the trustee and company objectives.
“It was a pleasure to lead the advice to the trustee alongside Eversheds Sutherland. The trustee and company’s engagement and nimble decision making through the project meant that they were in prime position to seize the opportunity to transact.”
Building society scheme secures £70m buy-in
Elsewhere, the West Bromwich Building Society Staff Retirement Scheme has completed a £70m buy-in transaction with Canada Life.
The deal covers approximately 490 deferred members and 400 pensioner members.
Glyn Smith, chair of the trustee board, said: “This is a very important step for the trustee, securing all remaining member benefits with a world-class insurer.
“We have enjoyed working with Canada Life and LCP, and have been impressed by their responsiveness and by how smoothly the buy-in has been achieved.
“We are confident that we have achieved an excellent outcome for our members.”
