Rothesay strikes £2.7bn buy-in, makes 12 deals in 2023
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UK pensions specialist Rothesay has completed a £2.7bn buy-in transaction with the Thales UK Pension Scheme, insuring the benefits 10,512 pensioners and dependants and 5,915 deferred members.
The deal marks the insurer’s 12th transaction in 2023 so far, bringing £12.7bn of new business premiums this year.
The sponsor of the scheme is Thales UK Ltd, a technology firm specialised in electrical systems and equipment for the aerospace, defence and security sectors.
The transaction is made with an upfront cash commitment from Thales. As part of the insurance premium, Rothesay accepted a number of illiquid assets held in the scheme’s investment portfolio.
Paul Durrant, director of compensation and benefits at Thales UK, praised Rothesay for having “skilfully navigated the complexities involved in this transaction, quickly finding optimal solutions where needed and completing it in a short space of time”.
He added: “This is a hugely successful outcome for us and helps us to meet our corporate objectives.”
Of the 12 deals secured by Rothesay, five were completed in the fourth quarter, when the insurer took on 1,730 corporate bond and gilt holdings, 231 swaps (both cleared and bilateral) as well as illiquid assets including private equity, 32 properties, commercial real estate loans, and 17 fund positions.
One of Rothesay’s latest transactions was a £4bn buy-in with the Co-op Section of the Co-operative Pension Scheme, announced last week, securing the benefits of almost 50,000 members.
Sammy Cooper-Smith, head of business development at Rothesay, said 2023 was one of the firm’s “busiest ever years” and 2024 was looking “incredibly exciting” with an “unprecedented pipeline” of deals.
Thales UK was advised by the lead transaction adviser, PwC, and law firm A&O. Rothesay received legal advice from Travers Smith. Gowling WLG, Mercer and Momentum advised the scheme trustee.
Will the market see larger deals coming through in 2024?
