The Cadbury Mondelēz Pension Fund has agreed a £520m buy-in with Rothesay Life, insuring benefits for around 1,900 pensioner members.
The deal relates to a representative subset of pensioner liabilities, with the premium paid in gilts and cash. Alongside a £500m buy-in completed in 2009, the scheme has now insured around 20% of its £4.6bn total liabilities.
It brings Rothesay Life's total announced bulk annuity deals to £1.2bn so far this year, following a £110m buyout of the Laird Pension Scheme in March, and a series of deals with undisclosed schemes.
Aon and Pinsent Masons advised the trustees of the fund, which was also supported by its in-house team, while Gowling WLG advised Rothesay Life.
Trustee chairman Greg Chick said: "We're pleased to announce the next step in a long-term de-risking strategy with the purchase of a buy-in policy with Rothesay Life, which provides an important contribution to the trustees' ongoing objective of reducing risk in the scheme and to increase the security for all members of the fund.
"This is a significant step to de-risk the scheme and our aim is to continue to do so in the future with good partners like Rothesay Life and Aon."
Rothesay Life business development team co-head Sammy Cooper-Smith said: "We are delighted that the trustees of the [scheme] have chosen Rothesay Life to secure its pensioners' payments.
"As part of its long-term de-risking strategy we have been working closely with the scheme's in-house team which has led to a particularly smooth process."
Aon partner John Baines added: "This transaction is a great example of how patience can pay dividends when setting a long-term strategy. After supporting the trustees with their first £500m buy-in 10 years ago, we are now helping to provide even greater security to [scheme] members.
"Being able to articulate very clear objectives to insurers enabled the trustees to navigate the market and secure a particularly competitive deal."
The bulk annuity is the latest in what is set to be a record-breaking year for the market, with £19.1bn of deals now having been disclosed, alongside a £7bn longevity swap.
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