Pension Insurance Corporation, PIC, has concluded a £600 million premium pension insurance buy-in which covers all of the Trustees of the Wolseley Group Retirement Benefits Plan’s, (the Plan) pensioner liabilities.
David Illingworth, Chairman of Trustees, said; “This buy-in covering a significant proportion of our overall liabilities is the logical next step in our de-risking strategy for the Plan.
“Over the past couple of years we have matched an increasing amount of our assets and liabilities and this strategy has now allowed us to take advantage of market conditions and fully insure these liabilities.
“I want to thank the team at PIC for their proactive approach and flexibility in helping us achieve this milestone, as well as our advisers for their support.”
Mitul Magudia, Head of Business Development at PIC, commented; “We are very pleased to have been able to complete this transaction with the Trustees.
“As with last year, and reflecting continued low gilt yields, the majority of insurance transactions in 2017 have been pensioner buy-ins. The bulk annuity market, driven by high levels of demand and competitive pricing, is currently experiencing a period of significant activity.”
The Trustees completed the transaction with the advise of Aon and Freshfields Bruckhaus Deringer.
John Baines, Partner at Aon, said the collaborative approach taken by the Trustees and the Company, using Aon’s Compass framework, meant they were able to “time the transaction to perfection.”
He added; “By spending time carefully preparing an approach to market they were able to present a compelling business case to insurers. When initial pricing exceeded expectations, the nimbleness of decision making allowed us to accelerate the project and to lock into very favourable pricing.”
