The trustee of the Pilkington Superannuation Scheme has entered a £230m buy-in with the Pension Insurance Corporation (PIC).
While PIC said it could not reveal the number of members covered by the transaction, actuary Uzma Nazir said it represented an interesting development in the market. "In terms of pricing for schemes, buy-ins look attractive compared to a longevity swap at the moment. They look cheaper and easier to carry out.
"There has been a tangible increase in interest from trustees in buy-ins since the Brexit referendum and we have completed a number of transactions over the past few weeks and expect more to follow. The scheme benefitted from the rise in the value of gilts and exchanged them for a buy-in policy."
PIC's head of origination Jay Shah observed there is a developing trend where multinational corporates that are parent companies of UK subsidiaries with pension schemes will be increasingly interested in heading towards full buyout.
Pilkington Group is a multinational glass manufacturing company and a wholly-owned subsidiary of the Japan-based Nippon Sheet Glass.
According to PIC this is its 13th transaction with a UK scheme which is ultimately sponsored by a Japanese company.
Trustee company chairman Keith Greenfield said: "We are very pleased to have been able to insure a proportion of our pensioner liabilities through this buy-in. We had to move quickly to secure the buy-in in the light of current volatile markets."
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.
Regulators must act now to impose some "proper regulation" to stop another defined benefit (DB) transfer advice disaster, saysTim Sargisson.
Opportunities for defined benefit (DB) schemes to pursue investment approaches that help repair the UK’s economy cannot stand in the way of improving member outcomes, Aegon says.
More members transferred out of defined benefit (DB) pension schemes in October after September's record lows while values were surprisingly stable, according to XPS Pensions Group's Transfer Watch.
Joanna Smith says trustees will need to accurately identify if covenant issues are short-term affordability concerns, or the start of more material deterioration.