UK specialist pensions insurer Rothesay has completed a £160 million full scheme buy-in with Repsol Sinopec, an oil and gas exploration and production company operating in the North Sea.
The transaction secures the benefits for all members of the company’s scheme, which includes defined benefit liabilities for 141 pensioners and dependants and a further 306 deferred members.
Rothesay explains that the buy-in was completed under an accelerated process that allowed the trustee to transact quickly to secure the scheme’s benefits amid market conditions that offered favourable pricing.
“We are delighted to protect nearly 450 members’ pensions through this transaction, and thoroughly enjoyed working with the Scheme and its advisers in completing this buy-in under an accelerated timeline,” said Róisín O’Shea, part of the Business Development team at Rothesay.
“The continued buoyancy in the bulk annuity market has resulted in more schemes than ever pursuing insurance solutions,” she added. “Rothesay’s capital strength and dedicated pricing team mean we are able to respond to these opportunities dynamically and at speed, helping schemes to secure the long-term future for their members.”
The lead broker for the buy-in was Hymans Robertson and the sole-Trustee was Vidett. Rothesay and the trustee also received legal advice from Eversheds and Addleshaw Goddard, respectively, while Isio provided investment advice to the trustee.
“The Scheme has been through quite a journey over the last 12 months,” said James Chalk, Trustee Director at Vidett. “With the help of our advisors, we acted quickly to lock-in funding level improvements seen in the first half of 2022 and position the Scheme to secure a great outcome in an increasingly busy insurance market.”
“We are delighted to have partnered with Rothesay and applaud the efficiency, collaborative approach and hard-work of Hymans Robertson and all the Scheme’s other advisers in executing this transaction.”
Iain Church, Risk Transfer Specialist at Hymans Robertson, also commented: “We are very pleased to have led a transaction that de-risks the Scheme for its members. The effort and willingness shown by both Vidett and Repsol Sinopec along with the teams at Rothesay, Addleshaw Goddard, Isio and Hymans Robertson to transact quickly allowed the Scheme to secure the policy while market conditions offered it attractive pricing.”
“In particular, the expert team at Vidett and the soleTrustee structure were particularly powerful to enable the Trustee to move nimbly throughout the project and get high insurer engagement in a busy market.”
