G4S picks insurer for £1.8bn pension risk transfer
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The G4S Pension Scheme has completed a £1.8bn full buy-in after improved funding, insuring the benefits of about 22,500 members, marking the second-largest derisking transaction disclosed to date this year.
The transaction represents the largest to date for Just Group, the insurer chosen by the trustees. The only deal larger so far this year are two buy-ins for the NatWest pension scheme of a combined £11bn, with an undisclosed insurer, reportedly Rothesay Life.
Other large risk transfers include Aviva’s £1.5bn full buy-in of the Michelin Pension and Life Assurance Plan and its £1.3bn deal with the RAC scheme, and Legal & General’s buy-in of the £1.3bn Credit Suisse UK defined benefit section.
The G4S trustees were advised by Aon and law firm Gowling WLG, while LCP and Freshfields gave advice to security company G4S. Just used CMS as legal advisers. Cardano was the covenant adviser and fiduciary manager of the scheme.
Trustee chair Allan Course, from Capital Cranfield Trustees, said the buy-in enhances members security and “ensures they receive the care and service they deserve”.
G4S executive chair Ashley Almanza said the company had paid “very material” contributions to the scheme over the years. “It is extremely pleasing to have worked in close collaboration with the trustees to agree a major buy-in that secures the position of the pension scheme members,” Almanza said.
Aon partner Charlotte Qarmby said there had been a highly competitive auction process for the buy-in, adding that the trustees “took great care to prioritise the members’ experience at every step of the process and carefully selected Just following a bespoke due diligence process”.
Just managing director defined benefit solutions, Pretty Sagoo, said there had been a “rigorous selection process” by Aon and LCP. Just look forward to providing “a brilliant member experience for years to come”, she added.
Trustee chair Allan Course, from Capital Cranfield Trustees, said the buy-in enhances members security and “ensures they receive the care and service they deserve”.
G4S executive chair Ashley Almanza said the company had paid “very material” contributions to the scheme over the years. “It is extremely pleasing to have worked in close collaboration with the trustees to agree a major buy-in that secures the position of the pension scheme members,” Almanza said.
Aon partner Charlotte Qarmby said there had been a highly competitive auction process for the buy-in, adding that the trustees “took great care to prioritise the members’ experience at every step of the process and carefully selected Just following a bespoke due diligence process”.
Just managing director defined benefit solutions, Pretty Sagoo, said there had been a “rigorous selection process” by Aon and LCP. Just look forward to providing “a brilliant member experience for years to come”, she added.
Will more large deals come to light before year end?
