Risk Reduction
General election result drives down absolute hedging in Q2
Hedging appetite fell during the second quarter of this year as a lack of index-linked gilt supply continued to bite, BMO Global Asset Management has said.
DB schemes insuring wrong tranche of members in buy-ins
Defined benefit (DB) trustees are not maximising value from their pensioner buy-ins as they are insuring the oldest tranche of members, Punter Southall has said.
British Steel restructure agreement welcomed but big questions still unanswered
Last week's agreement on a regulated apportionment arrangement (RAA) to split Tata Steel UK (TSUK) from its defined benefit (SB) pension fund fails to answer fundamental questions.
TPR and PPF agree RAA proposal for British Steel scheme
The regulator and lifeboat fund have agreed plans to sever the £15bn British Steel Pension Scheme from Tata Steel UK after months of negotiations with the trustee and sponsor.
Buy-in demand to hit £50bn p/a by 2032; De-risking deals total £5.1bn in H1
Defined benefit (DB) schemes will offload around £700bn of liabilities to insurers over the next 15 years, latest analysis by Hymans Robertson has suggested.
SSE completes three de-risking deals worth £1.2bn
Scottish and Southern Energy (SSE) has entered into two buy-ins with Pension Insurance Corporation (PIC), and a longevity swap with Legal & General (L&G).
Mizuho's hybrid scheme winds up with L&G in £10m buyout
Mizuho Capital Markets has offloaded its hybrid pension fund through a transfer exercise and ultimately a buyout with Legal & General (L&G), following a corporate reorganisation.
L&G racks up £1.5bn of de-risking deals in H1
Legal & General (L&G) has recorded a bumper first half of the year for de-risking deals as its business in this area more than doubled from the same period in 2016.
Q&A: Transferring scheme risk to insurers
Professional Pensions spoke to two Mercer experts about transferring risk to insurers. Here is what they had to say…
PPF funding rises to 121.6% after stellar returns and low claims
Despite a challenging year, the lifeboat fund has weathered the storm with strong returns and an improved funding level. Stephanie Baxter analyses its annual report
The evolution of opportunity
2017 marks Legal & General's 30th year in the bulk annuity market. In this article Ashu Bhargava discusses how pricing has evolved in that time, ultimately giving pension scheme trustees greater opportunities than ever to de-risk.
Vesuvius rolls fifth tranche of members into PIC buy-in
Vesuvius has signed a £15m deal with Pension Insurance Corporation (PIC) to insure further pensioner members in its UK defined benefit (DB) scheme.
Only a third of schemes have formal de-risking journeys
More than half (55%) of defined benefit (DB) schemes are now cashflow negative, yet many do not have formal de-risking plans, according to research.
Understanding the limitations of the CMI longevity model
The Continuous Mortality Investigation's (CMI's) longevity model is a useful projection tool for schemes but, as Amy Kessler explains, it has key limitations.
3i Group Pension Plan agrees £200m buy-in with PIC
The 3i Group Pension Plan has completed a £200m buy-in with Pension Insurance Corporation (PIC), its first insurance policy so far.
Tullett Prebon scheme enters £270m bulk annuity
The trustees of the Tullett Prebon Pension Scheme have agreed to insure all liabilities through a bulk annuity with Rothesay Life.
Is the slowdown in longevity improvements being overstated?
Deficits could fall by hundreds of billions of pounds if the six-year stall in life expectancy improvements becomes a long-term trend. However, there is a risk of taking too much notice of short-term changes, writes Stephanie Baxter.
Slowed longevity improvements could wipe £310bn off total pension deficit
Schemes could see huge reductions in their liabilities on a funding basis if the recent slowdown in life expectancy improvements becomes a long-term trend, according to PwC.
DB sponsors update mortality assumptions more frequently
Sponsoring employers are increasingly updating mortality assumptions at a more frequent rate to keep on top of changes in pension liabilities, according to Mercer.
Pfizer scheme enters £100m buy-in with Scottish Widows
Trustees of the Monsanto Pension Plan have agreed a £100m buy-in, protecting benefits for around 150 pensioners.
Blame shifting: Pre-packs are not a moral hazard problem
Con Keating says pre-pack administrations do not pose a moral hazard issue, and the problem is actually perverse incentives
How PGL's longevity swap was converted into a buy-in
Phoenix Group's senior corporate pensions actuary Richard Zugic speaks to PP about how a longevity swap was transformed into a bulk annuity for the PGL Pension Scheme in the first deal of its kind.
Converting longevity swaps into bulk annuities: The next de-risking innovation?
Longevity hedges have long been considered a hurdle to doing a bulk annuity, but a ground-breaking deal shows it doesn't have to be. Stephanie Baxter looks at why converting swaps into buy-ins is taking off.
Mortality improvements in the noughties may have been the blip
Higher health and social care spending between 2000 and 2010 may have caused a blip in longevity estimates by accelerating improvements, according to Barnett Waddingham.
