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.
Aviva Life & Pensions has concluded an £875m buy-in with its own staff pension scheme, following on from a similar transaction last year.
Nearly every trustee is confident of the next stage in their scheme’s strategy, despite almost an equal number being forced to consider replacing plans within the prior 12 months, according to research by Barnett Waddingham.
Companies could be overstating their pension liabilities by up to £60bn due to their life expectancy assumptions, according to XPS Pensions Group.
Just Group has completed a £74m pensioner buy-in with the UK pension scheme of a US-listed engineering business.
Defined benefit (DB) schemes that provide GMPs must revisit and, where necessary, top-up historic cash equivalent transfer values (CETVs) that have been calculated on an unequal basis, a landmark court judgment said last week.