Rothesay, a prominent UK pensions insurance specialist, has successfully executed a £2.7 billion transaction to insure all liabilities of the Thales UK Pension Scheme.
This comprehensive deal covers over 16,000 members, including 10,512 pensioners and dependents, along with 5,915 deferred members.
The transaction involved a strategic agreement with Thales, a global high technology leader and sponsor of the scheme through its UK subsidiary, Thales UK Limited.
Thales provided an upfront cash commitment, transferring the responsibility and risk associated with the pension liabilities to Rothesay.
As part of the insurance premium, Rothesay accepted illiquid assets from the Scheme’s investment portfolio. This marks Rothesay’s twelfth pension scheme assisted in 2023, contributing to a remarkable new business total of £12.7 billion for the year.
In the final quarter alone, Rothesay handled five de-risking transactions, undertaking or underwriting 1,730 corporate bond and gilt holdings, 231 swaps (both cleared and bilateral), and various illiquid assets, including private equity, properties, commercial real estate loans, and fund positions.
Sammy Cooper-Smith, Head of Business Development at Rothesay, expressed delight at welcoming the Scheme’s 16,000 members and highlighted Rothesay’s execution capabilities in navigating large and complex transactions.
Cooper-Smith also noted the exciting prospects for 2024 with an unprecedented pipeline of schemes seeking insurance solutions.
Thales UK’s Director of Compensation and Benefits, Paul Durrant, emphasised the significance of securing pension benefits for over 16,000 current and past employees.
He praised the advisory teams and Rothesay for efficiently overcoming challenges and achieving a successful outcome.
Chair of Trustees, Peter Rowley, expressed satisfaction in securing long-term security for all pension scheme members through a single buy-in transaction.
Rowley thanked the sponsor, advisers, and Rothesay for their collaborative efforts in executing a complex transaction.
Swapnil Katkar, Head of Pension Deals at PwC, highlighted the key role played by PwC as the lead transaction adviser in optimising the cash injection and structuring suitable solutions for illiquid assets.
Mercer’s Risk Transfer Partner, Ben Stone, commended the collective effort of all parties in a highly competitive market.
Paul Feathers, Head of Pension Risk Transfer at Gowling WLG, concluded by expressing delight in supporting the Trustee in concluding this important transaction with Rothesay for the benefit of the Scheme’s members.
