The ICI Pension Fund has revealed it completed another two buy-ins worth almost £1bn in September with two major insurers.
Legal and General (L&G) took on £0.4bn of liabilities while Scottish Widows insured £0.6bn.
This latest round of intense buy-in activity means11 transactions covering around 75% of liabilities or £9bn has been covered since 2013. ICI has now conducted £2.5bn of buy-ins in the last six months.
Those party to the buy-ins heralded the structure, speed and manner in which the deals were conducted.
Scottish Widows director of bulk annuities Emma Watkins said: "This transaction demonstrates the effectiveness of the umbrella buy-in contracts that we have in place with the ICI Pension Fund. They enable the trustee to optimise the timing and size of transactions working within a clearly defined process designed with their advisors LCP that ensures high levels of insurer engagement."
ICI Pension Fund chief executive Heath Mottram (pictured above) said: "We see this becoming a blueprint for how larger schemes will insure their liabilities at scale through buy-ins in the future."
Allen and Overy partner Neil Bowden added: "It has been a real privilege to help the trustee on its recent journey, insuring £9bn of pension liabilities over the past two-and-a-half years. The key moment was putting in place an umbrella contract with insurers that has allowed eleven separate deals over that time."
LCP has been the lead adviser and Allen and Overy has been the legal adviser on all the deals.
LCP partner Charlie Finch said: "This is a text book case of how to achieve the right de-risking strategy in a cost efficient and competitive way."
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.
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...