The Kingfisher Pension Scheme has completed a buy-in with Pension Insurance Corporation (PIC), covering around £200m of liabilities for 400 pensioner members.
The contract brings the amount of insured liabilities up to circa £450m, following a £230m medically-underwritten buy-in with Legal & General in 2016.
Just over 10% of just over £4bn liabilities on a wind-up basis has now been insured. On the same basis, assets totalled £2.8bn as of 31 March 2016, with a funding level of 68%.
A price lock mechanism was engaged during the buy-in process, protecting the home improvement company's scheme from any fluctuations and volatility in the year-end period.
Trustee chairman Clive Gilchrist said the contract would boost member security for all members.
"This is another important step for the Kingfisher Pension Scheme on its journey towards its target of self-sufficiency," he said. "The annuity provides a further improvement to the financial security of the scheme for all members. I would like to thank the PIC team and our advisers for their help in making this a seamless exercise."
PIC head of business development Mitul Magudia added the continuing shift into fixed income assets was enabling a trend of phased buy-ins.
"Insuring pension schemes in phases has become the dominant trend within bulk annuities over the past couple of years," he said. "With pension schemes moving increasingly into fixed income assets that better match their liabilities, we would expect this trend to continue. This is the route that the Kingfisher trustees have taken and we are very pleased to have been able to help them continue their de-risking programme."
The trustees were advised by Aon, whose partner John Baines commented: "In their second transaction, the Kingfisher trustees benefited from the robust decision-making framework that was already in place, and the excellent groundwork from their pensions team, to efficiently increase the security of benefits for their members.
"In this case, the trustees were able to secure a valuable price lock to immunise the scheme from market movements over a potentially volatile year-end period."
The scheme's most recent publicly available funding position showed a surplus of £15m on a technical provisions basis as of 31 March 2017, amounting to a funding level of 100.4%.
Aviva Life & Pensions has concluded an £875m buy-in with its own staff pension scheme, following on from a similar transaction last year.
Just Group has completed a £74m pensioner buy-in with the UK pension scheme of a US-listed engineering business.
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.