Just Group, a specialist UK financial services company, has completed a £1.8 billion full buy-in with the Trustee of the G4S Pension Scheme, covering the benefits of around 22,500 members.
This has become Just’s largest insurance de-risking transaction to date, as well as the largest publicly announced deal in the Bulk Purchase Annuity market this year, according to the announcement.
In recent years, the Scheme’s funding status has shown considerable improvement, allowing the Trustee and Company to accelerate their plans aimed at reducing risks within the Scheme. Through collaborative efforts, both parties actively engaged with the market, resulting in a highly favorable outcome for members.
A key focus for the Trustee was to enhance the long-term security of members’ benefits and ensure good member experience. The Trustee undertook a bespoke, careful due diligence process which resulted in the selection of Just.
Pretty Sagoo, Managing Director, Defined Benefit Solutions, Just Group, commented: “We are delighted to have been selected by the Trustee to secure the Scheme members’ benefits, and we look forward to providing a brilliant member experience for years to come.
“The transaction was the culmination of a rigorous selection process run by Aon and LCP, and demonstrates our ability to support larger schemes in their derisking journeys. There is a vibrant insurance de-risking market for schemes of all sizes and Just are delivering outstanding service to small schemes, large schemes and everything in between.”
The Trustee was advised throughout the process by Aon, while LCP provided advice to the Company. Legal advice was provided by Gowling WLG to the Trustee, by Freshfields to the Company and by CMS to Just Group. Cardano acted as covenant adviser and fiduciary manager.
Allan Course, Capital Cranfield, Chair of Trustee, stated: “Our focus has always been on ensuring that the promises made to our members are kept, and this buy-in allows us to safeguard those commitments with confidence. With thanks to Aon, who skilfully led the process, navigating through the market to reach our goal.
“The buy-in with Just not only enhances the security for members, but also ensures they receive the care and service they deserve. It has been a tremendous effort from all advisers involved, with special thanks to the Aon, Cardano, Gowling and Capita teams in supporting the Trustee through the process.”
Ashley Almanza, Executive Chairman, G4S, added: “Supporting the members of the pension schemes has always been a key priority for G4S Limited and the company has paid very material contributions into the schemes, on behalf of members, over many 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.”
