Five schemes sponsored by advertising firm WPP have completed a buy-in with Pension Insurance Corporation - insuring £140m of pensioner and deferred liabilities.
Independent Trustee Limited (ITL) director Peter Docking, the trustee chairman of each of the five schemes, said: "This was a complicated transaction and I want to thank PIC for their dedication and assistance in helping us to achieve our aim of securing the benefits of pension scheme members."
PIC head of business development Mitul Magudia commented: "This is an innovative transaction that simultaneously secures the pension payments of five pension funds sponsored by WPP. This continues the trend of FTSE100 companies that have de-risked their pension schemes in 2017 through insurance.
"The bulk annuity market is currently undergoing a period of intense demand and we expect more such high-profile transactions in 2018, in what many believe will be an exceptionally busy year.
Mercer was lead adviser on the deal. Partner David Ellis commented: "This is an excellent example of a major corporate and its trustee taking proactive action to manage their pension risks."
The Smiths Industries Pension Scheme has secured a £146m buy-in with Canada Life in its fourth bulk annuity and its sponsor’s tenth overall.
The Prudential Staff Pension Scheme has entered into a £3.7bn longevity swap with Pacific Life Re, insuring the longevity risk of over 20,000 pensioners.
The Baker Hughes (UK) Pension Plan has secured approximately £100m of liabilities through a buy-in with Just Group.
There have now been a total of 30 longevity swaps over £1bn publicly announced. The full list, provided by Willis Towers Watson and through PP research, is as follows...
The Reckitt Benckiser Pension Fund has secured a £415m buy-in with Scottish Widows, insuring the benefits of around half of pensioners.