WPP completes £140m buy-in deal with PIC to insure five schemes
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."
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