Low & Bonar has completed a medically underwritten buy-in of £34m of liabilities within its defined benefit (DB) pension scheme.
According to its annual financial report published on 2 February, the manufacturing group completed the transaction in December 2015. It said this was to eliminate interest rate, inflation and mortality risks, as well as provide an effective liability and cash flow match.
It is not yet known which insurer facilitated the buy-in.
The group incurred £0.2m of costs relating to the buy-in, and a further £0.2m of non-recurring pensions administration costs relating to data cleansing.
The DB scheme is closed to new members and future benefit accrual.
It continued to adopt a lower risk investment strategy during 2015, during which the interest rate and inflation risks were more closely hedged. It further reduced its exposure to equities to 19% of the scheme's assets from 23% in 2014.
It recorded a surplus of £5.2m by November 2015, which the firm said was principally due to the outperformance of the assets against their expected return.
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