Life insurer Just Group has completed a £5 million annuity buy-in transaction with pension plan of Premaberg Holdings, a UK manufacturer of separation and filtration systems for marine, offshore, rail and HVAC applications.
The transaction was completed using Mercer’s streamlined quotation service.
A statement from Premaberg Holdings described the deal as a major step towards fully settling the plan’s legacy defined benefit pension obligations and securing its members’ retirement incomes.
“We’re delighted to have secured our members’ DB pensions through this bulk annuity transaction,” said Jo Richardson, Chair of Trustees.
“The ability to regularly monitor actual insurer pricing was invaluable, allowing us to quickly take advantage of improved market pricing earlier this year and transact firmly within our price trigger.”
Ruth Ward, Principal in Mercer’s Risk Transfer Team and lead consultant on the deal added, “This deal clearly demonstrates that smaller schemes can and do achieve successful bulk annuity transactions, despite continued high demand from much larger schemes.
“The trustees (including PAN Trustees) completed thorough preparation while we monitored buy-in pricing via our streamlined quotation service, ultimately allowing the plan to complete the transaction within just four business days of receipt of Just’s final quotation. A great result all round.”
Peter Jennings, Business Development Manager, Defined Benefit Solutions, Just Group, said, “Delivering security for pension scheme members is the goal that unifies all the parties involved in this deal.
“Using an efficient smaller scheme broking approach such as Mercer’s streamlined quotation service, coupled with an open and collaborative working relationship with the trustees and sponsor were key to generating our engagement and delivering a successful transaction.”
