Specialist insurer Pension Insurance Corporation (PIC) has announced the completion of its second buy-in with the Civil Aviation Authority’s (CAA) defined benefit scheme, covering £60 million of liabilities.
“This transaction takes us a step closer to achieving our long-term aim of de-risking the scheme,” said Joanna Matthews, Chair of the Trustees.
“It is great to work again with PIC, who demonstrated strong financial credentials, excellent customer service and competitive pricing. I am glad that all our members will benefit from the increased security that this insurance contract brings,” she added.
The Civil Aviation Authority (CAA) is an independent, specialist, aviation regulator and provider of air traffic services. It regulates active professional and private pilots, licensed aircraft engineers and air traffic controllers, as well as other bodies.
The Trustees were advised by insurance and reinsurance broker Aon, with legal advice provided by Pittsburgh-based law firm Reed Smith.
Uzma Nazir, Head of Origination Structuring at PIC, commented, “We are really pleased to continue our relationship with the Trustees in this latest transaction with the Scheme, a very positive outcome for members.”
“A phased approach to de-risking has become a popular and practical choice for many schemes, due to their relative ease and the speed at which they can be conducted. It has been an incredibly busy market so far and we expect this to continue into the second half of the year.”
Partner in Aon’s Risk Settlement Group, Paul Belok, said, “Following on from the previous transactions totalling £1.7 billion, this transaction fits with the Scheme’s policy of seeking opportunities to de-risk over a period of time, using a phased approach to annuitisation.”
“We monitored a number of key metrics through a quarterly dashboard, to determine when the time was right to go to market, and have been able to transact efficiently using previously
agreed terms. We are delighted to have been able to help the Trustee complete this transaction.”
Simon Hartley, Partner in Reed Smith’s Pensions Group, added, “We are very pleased to have helped our long-standing client, the Trustee of the Civil Aviation Authority Pension Scheme, to achieve another major step in its de-risking strategy.”
