Baker Hughes agrees £900m triple buy-ins
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Three UK pension schemes sponsored by global oil field services and energy technology firm Baker Hughes have agreed to insure £900m of liabilities, following a selection process on 15 May.
The buy-ins with the Baker Hughes (UK) Pension Plan, the Brush Group Pension Scheme and the Pipeline Integrity International Group Pension Scheme were conducted with Pension Insurance Corporation and cover about 3,000 pensioners and dependants and nearly 4,000 deferred members.
“Achieving this transaction in expedited timescales is a great result for members and is testament to the highly collaborative approach between the trustees of all three schemes, the company, PIC and the hard work of our advisory teams,” said chair of the Baker Hughes (UK) Pension Plan, Sally Minchella from Law Debenture.
Andrew McKinnon, who chairs the Brush Group Pension Scheme, said: “We selected PIC due to their track record and focus on members, combined with their ability to meet our specific requirements.”
LawDeb also sits on the Brush Group scheme, represented by Lynne Rawcliffe.
Colin Mcfadden, chair of the Pipeline Integrity International Group Pension Scheme, said: “The PIC team showed a flexible and innovative approach to ensure our members’ needs were met. I’m very grateful to our advisers for their hard work on this project and historically.”
Matt Richards, head of origination structuring at PIC, said: “Each of the schemes covered had specific requirements that needed specialist structuring. It’s thanks to the fantastic teamwork of everyone involved that we were able to conclude the deal in a relatively short timeframe.”
The Baker Hughes deal represents the first this year that is approaching £1bn and has been made public by the insurer. The transactions PIC has announced so far in 2025 are a £540m deal with the C&J Clark Pension Fund - the second for the footwear company - a £24m buy-in of the Holophane Retirement Benefits Scheme, and a £25m buy-in of the FSCS Pension Scheme.
WTW managing director Shelly Beard was the lead adviser on the Baker Hughes transactions. CMS provided legal advice on the deals for all three schemes, while PwC provided financial strength advice. WTW and Baker McKenzie advised Baker Hughes. PIC was advised by Herbert Smith Freehills.
At the Baker Hughes (UK) Pension Plan, WTW is the scheme actuary, LCP the investment adviser, CMS gives legal advice, and Aptia is the administrator.
For the Brush Group Pension Scheme, Aon is scheme actuary, administrator and investment adviser, while Squire Patton Boggs is the legal adviser and Cardano the fiduciary manager.
First Actuarial provides actuarial, administration and investment services and Irwin Mitchell is the legal adviser to the Pipeline Integrity International Group Pension Scheme.
