Batt Cables completes £34m full buy-in
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The pension scheme of cable supplier and distribution company Batt Cables has completed a £34m full buy-in to insure the benefits of 193 deferred members and 71 pensioners after negotiating a deferred premium.
The buy-in with insurer Just Group completed in December last year. The transaction was structured to enable full de-risking up front while part of the premium was deferred to provide flexibility to the sponsor, according to specialist consultants K3 Advisory, which worked on the deal in partnership with the scheme’s long-term actuary and consultant Cartwright.
“In this deal, we worked together with Cartwright to identify and seize the opportunity as it arose, transacted quickly, and secured the members’ benefits, while agreeing a flexible deal structure that allowed the sponsor to provide the funding required over time,” said Adam Davis, K3’s managing director.
Head of DB sales at Just Group Pete Jennings said the transaction took place during a very busy year-end period, which “shows that while the market is vibrant Just remain open to schemes of all sizes".
Trustee chair Peter Holm thanked the scheme’s advisers, whose “initiative and attention to detail” meant the trustees were able to move quickly.
“It is with some sadness that the end of the scheme is in sight. However, we couldn’t be happier that all members’ benefits will be secured in full at an attractive price for the company,” Holm added.
