Smaller schemes complete separate buy-ins

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The Energizer UK Pension Plan’s corporate sole trustee Zedra Governance completed a £44m full buy-in transaction with Just Group in February this year, insuring the benefits of 409 pensioners and 358 deferred members. Separately, Zedra was also involved in a £19m buy-in with an unnamed insurer, covering 69 people's benefits.

Energizer picks Just

The Energizer scheme, sponsored by the global battery manufacturer, used Just’s bulk quotation service.   

Clare James, head of corporate sole trustee services at Zedra, said the Energizer trustee was delighted to have been able to improve benefit security for members of the plan.  

“The trustee was particularly pleased with how quickly it was possible to move from guaranteed quote to execution,” she said.  

Consulting firm Buck advised on this transaction, while legal advice was provided to the trustees by Hogan Lovells.  

Geraint Jones, business development manager at Just, said: “The transaction demonstrates that there is a vibrant DB derisking market for schemes of all sizes.” 

Just has won a number of bulk annuity deals recently, including a £400m buy-in with an unnamed tech group and a £32m buy-in with Air France UK.  

Motor industry scheme completes £19m buy-in

In a separate transaction, an unnamed insurer took on the asset and liabilities of 52 pensioners and 17 deferred members of a scheme in the motor industry in a full buy-in. 

Zedra also acted as professional trustee at this scheme, represented by Kim Nash as chair of the board and with strategic support from risk transfer specialist Alan Greenlees. 

Greenlees said: “We were really pleased with the innovation and pragmatism displayed by all the advisers during this project, allowing us to guide the scheme through this transaction and closer to their end goal. These deals are a group effort with members at the heart of it. We are pleased to have been able to secure this result for the scheme, within months from when negotiations first began, and provide greater security for members’ benefits.”

The £19m deal was advised by specialist consultants K3 Advisory.

Adam Davis, managing director of K3, said the deal was an example of what can be achieved for small schemes when all parties work well together. 
"Our ongoing market tracking and strong connections allowed us to create competitive tension on this transaction, and swiftly secure attractive pricing that would otherwise only be available to larger schemes - securing member benefits with minimal costs," Davis added.

Spence & Partners provided administration, actuarial and investment advice, while Mills and Reeve advised on legal matters. 

How competitive is bulk annuity pricing at the moment?  

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