Fujifilm, Clariant opt for buy-ins
Image: gesrey - stock.adobe.com
Pardon the Interruption
This article is just an example of the content available to mallowstreet members.
On average over 150 pieces of new content are published from across the industry per month on mallowstreet. Members get access to the latest developments, industry views and a range of in-depth research.
All the content on mallowstreet is accredited for CPD by the PMI and is available to trustees for free.
The Fujifilm UK Limited Pension and Life Assurance Scheme has completed a £46m buy-in transaction, insuring the benefits of 484 members. Separately, the Clariant Pension Plan chose a 'BPA plus' buy-in for £110m of liabilities for 900 members.
The Fujifilm deal was completed with Royal London, with Marsh and law firm CMS acting as advisers to the trustees.
“The trustees and sponsor were fully engaged throughout the competitive process, and we were impressed by the quality of proposals and the collaborative approach of all parties involved," said trustee chair Duncan Edgar.
Royal London said it developed a solution tailored to the pension scheme’s requirements. “From the outset, there has been a strong shared commitment to delivering excellent outcomes for members and providing a high-quality experience," said BPA origination lead at Royal London, Beatrice Male.
Kevin Boyle, risk transfer adviser at Marsh, added: “This major milestone will provide cost certainty for the sponsor and long-term security for the members. The trustees and sponsor's detailed preparation led to a smooth competitive process with thorough consideration of insurer proposals to achieve the best possible outcome for members."
The Fujifilm buy-in was announced a day after a £110m 'BPA plus' transaction for the UK scheme of chemical company Clariant was revealed. The transaction with M&G completed in July, covering about 900 members.
This was the Clariant Pension Plan's third buy-in, executed with M&G subsidiary, the Prudential Assurance Company. The 'BPA plus' offer by M&G uses the firm's with-profits fund, offering discretionary member bonuses.
Bestrustees holds the chair position at the company's UK scheme. It was advised by WTW, and on investments by Mercer. Howden is the administrator, while DLA Piper gave legal advice.
Head of pension risk transfer at M&G, Rosie Fantom, said: "BPA plus has helped the trustee achieve an important step in the plan's risk transfer journey."
Tom Ashworth, a senior director at WTW, added: “We worked closely with the trustees and other advisers throughout a competitive process to find the solution that best met the plan’s objectives, balancing strong pricing, benefit flexibility and operational considerations. We’re delighted to have helped secure a strong outcome for members.”
