Atradius UK Pension Scheme in £190m buy-in
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Spanish trade credit insurer Atradius has completed a £190m buy-in of its UK defined benefit scheme. As well as covering deferred members and pensioners, the transaction includes benefits accrued to date for 66 active members.
The scheme, sponsored by Atradius Crédito y Caución S.A. de Seguros y Reaseguros - a subsidiary of Grupo Catalana Occidente - chose Pension Insurance Corporation for the deal.
Trustee chair Michael Thomas said the advice by consultants Isio and law firm Eversheds Sutherland helped the trustees come to a decision.
He added: “We are grateful for PIC’s flexibility in structuring the transaction in a way that meets our objectives and provides security to our members for the long term.”
PIC origination actuary Adam Dann said: “The preparation that the trustees and the company made prior to coming to market and the close collaboration between all the parties involved enabled this successful transaction.”
The buy-in required “innovative structuring to ensure it remains futureproofed” and meet the trustee and employer’s objectives, said Isio director Karen Gainsford.
“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,” she noted.
PIC received legal advice from Herbert Smith Freehills.
