Construction machinery scheme concludes £250m buy-in
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The trustees of the Finning Pension Scheme – sponsored by Caterpillar machinery dealers Finning (UK) – have completed a £250m full buy-in. The transaction covers about 2,170 scheme members.
The deal with Standard Life went through in December last year, following a competitive tender.
Aon was the lead transaction adviser to the trustees, who took investment advice from Hymans Robertson and legal advice from Gowling WLG.
“Standard Life was selected following a highly competitive process involving seven insurers,” said trustee chair Ciaran McMenamin. “We chose Standard Life taking into account a broad range of factors, including Standard Life’s willingness and ability to work closely with the scheme’s administration team and minimise impacts on member service and experience.”
James Staveley-Wadham, principal risk settlement consultant at Aon, said a key outcome for the trustee was ensuring that a strong member experience remained post buy-in.
He added: “This is an area in which we are seeing ever-growing demand from schemes when considering insurance.”
Alex Oakley, BPA transaction manager at the insurer, said: “Insurers continue to play a crucial role in this highly active DB derisking market, and we remain focussed on collaborating closely with schemes and trustees to deliver tailored solutions that align with their long-term objectives.”
Standard Life, part of Phoenix Group, revealed in January that it had sealed a £1.5bn buy-in with the Compass Group Pension Plan for over 14,000 pensioners and 11,000 deferred members. In November, it said that the Halma Group Pension Plan and the Apollo Pension and Life Assurance Plan had secured benefits through buy-ins of a combined £250m, and last year also saw the insurer underwrite £880m of liabilities for the Rolls-Royce & Bentley Pension Fund.
The deal with Standard Life went through in December last year, following a competitive tender.
Aon was the lead transaction adviser to the trustees, who took investment advice from Hymans Robertson and legal advice from Gowling WLG.
“Standard Life was selected following a highly competitive process involving seven insurers,” said trustee chair Ciaran McMenamin. “We chose Standard Life taking into account a broad range of factors, including Standard Life’s willingness and ability to work closely with the scheme’s administration team and minimise impacts on member service and experience.”
James Staveley-Wadham, principal risk settlement consultant at Aon, said a key outcome for the trustee was ensuring that a strong member experience remained post buy-in.
He added: “This is an area in which we are seeing ever-growing demand from schemes when considering insurance.”
Alex Oakley, BPA transaction manager at the insurer, said: “Insurers continue to play a crucial role in this highly active DB derisking market, and we remain focussed on collaborating closely with schemes and trustees to deliver tailored solutions that align with their long-term objectives.”
Standard Life, part of Phoenix Group, revealed in January that it had sealed a £1.5bn buy-in with the Compass Group Pension Plan for over 14,000 pensioners and 11,000 deferred members. In November, it said that the Halma Group Pension Plan and the Apollo Pension and Life Assurance Plan had secured benefits through buy-ins of a combined £250m, and last year also saw the insurer underwrite £880m of liabilities for the Rolls-Royce & Bentley Pension Fund.
