Legal & General has agreed a £250m buy-in transaction with the Selecta UK Pension Plan securing the benefit payments of approximately 1,000 pensioners and 1,000 deferred members.
Selecta UK is Europe’s leading coffee and vending machine operator. The Plan has an existing relationship with Legal & General, having worked with Legal & General Investment Management (LGIM) as its asset manager since 1992.
This enabled an extremely smooth asset transfer, with Legal & General also being able to lock to the Plan’s existing assets which provided price certainty to the Plan at an early stage of the buy-in process.
Hymans Robertson was the lead transaction adviser. Legal advice was provided to the Trustee by Pinsent Masons and to Legal & General by Macfarlanes. The sponsor was advised by PWC.
Celia Monteiro, Director, Pension Risk Transfer, Legal & General Retirement Institutional said: “Working with pension schemes at all stages of their de-risking journey is fundamental to what we do at Legal & General and we are delighted that we have been chosen as the Selecta UK Pension Plan’s buy-in partner, given their long-standing relationship with LGIM.
“This transaction and the smooth transfer of assets once again demonstrates our ability to offer innovative, bespoke, buy-in solutions for our clients. We look forward to continuing to work with the Plan as it continues its de-risking journey, providing further security to its members.”
Dinesh Visevadia, Director at Independent Trustee Services and Trustee of the Plan commented: “This buy-in is the culmination of a long journey of incremental de-risking steps to improve the security of the Plan.
“Hymans Robertson identified a market opportunity and helped us move quickly to take advantage of it through a well-run process, securing excellent terms with Legal & General and significantly improving security for our members.”
Kieran Mistry, Senior Risk Transfer Specialist at Hymans Robertson added: “We are very pleased to have helped the Trustee secure this buy-in, removing the majority of the Plan’s risks.
“As ITS is the sole Trustee, we were able to work swiftly and nimbly with them to take advantage of a short-term period of relative quiet in the buy-in market over the first half of 2021. The result was a highly competitive broking process, with Legal & General presenting a compelling and tailored proposition.”