The Leonardo Electronic Pension Scheme has concluded a £160m pensioner buy-in with Just Group in the scheme’s first risk transfer exercise.
The aerospace, defence and security company's £1bn pension scheme insured the benefits of all 1,253 pensioners in its electronics, defence and security systems division with non-trivial annual pensions.
While the process began late last year, the deal was concluded in March during difficult market conditions. The scheme remains open to further accrual but closed to new members.
Leonardo UK head of pensions Mike Nixon said: "It's great news that we have secured the benefits of our pensioners with Just Group and that we were able to complete the transaction despite the turbulence in markets.
"Our scheme is still open to accrual, but our strong funding position meant we have been able to lock down this risk at an early stage."
The scheme was advised by Aon, Burges Salmon, and Rivers & Mercantile, while Just Group was advised by Pinsent Masons.
Aon principal consultant Michael Walker said: "This complex deal started in late 2019 when markets were stable and completed in late March at an especially testing time in the financial markets. The success required close collaboration between Aon and the other scheme advisers and continuous monitoring of changing conditions in the gilts and swaps markets - up to the last minute."
Just Group chief executive David Richardson added: "We are pleased to have supported the Leonardo Electronics Pension Scheme to progress their de-risking journey and demonstrate that we continue to offer defined benefit de-risking solutions to provide peace of mind to pension schemes at this time of unprecedented change.
"All parties were very well-prepared and we were pleased to show our speed and agility to ensure the transaction was completed efficiently during major market uncertainty."
It was confirmed yesterday (28 April) that Just had also completed two buy-ins worth £66m with the NG Bailey pension scheme.
The NG Bailey Scheme has agreed two pensioner buy-ins worth £66m with Just Group with support from K3 Advisory.
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