Rothesay insures Smith & Nephew’s workers with final buy-in
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Insurer Rothsay has secured a £260m buy-in transaction with the Smith & Nephew UK Pension Fund, completing the fund’s objective of insuring all of its members’ benefits.
The deal follows previous buy-in transactions in 2013, 2017 and 2022. This latest transaction secures the benefits for all remaining uninsured members of the fund with Rothesay, including 1,885 pensioners and dependants, and 2,315 deferred members.
Katie Overton, business development at Rothesay, said: “We are very happy to have helped the Smith & Nephew UK Pension Fund complete its de-risking journey, securing the benefits of all its members.”
The fund is sponsored by Smith & Nephew UK Ltd, a medical equipment manufacturing company headquartered in Watford.
LCP acted for the trustee as the lead broker on the transaction. Eversheds Sutherland provided legal advice to Rothesay, and Travers Smith provided legal advice to the trustee.
Excluding the latest transaction, Rothesay won at least four other buy-in deals this year to date: £160m with the Repsol Sinopec Pension and Life Scheme; £1.4bn buy-in with the Safeway Pension Scheme; £34m with the Shoe Zone Group Pension Scheme; and £762m with the 1967 Section of the Morrisons Retirement Saver Plan.
How should insurers run an effective phased buy-in strategy?
