The Hitachi UK Pension Scheme has agreed and completed a £275m buy-in deal with Legal & General (L&G) covering the remaining benefits in the scheme.
The deal insures the entitlements of deferred and pensioner members who were not covered by a buy-in with Scottish Widows in 2018.
A price lock was utilised to give trustees transaction certainty while taking advantage of favourable pricing conditions and market capacity.
Trustee chairwoman Jo Myerson, who is also trustee director at Ross Trustees, said: "Securing members' benefits is the ultimate objective for all trustees. We worked with two strong insurers to meet this objective for the scheme and were able to take advantage of favourable market pricing due to effective decision-making achieved as a sole corporate trustee."
L&G Retirement Institutional pricing and execution director for UK pension risk transfer Gavin Smith added: "We are pleased to have established this relationship with Hitachi trustees and helped them secure their members' long-term financial security.
"This buy-in, in particular, demonstrates our ability to insure pension schemes with a higher proportion of deferred members, showing that pensions de-risking isn't just the preserve of mature pension schemes. It also demonstrates the value to trustees and sponsoring companies of being able to move quickly when pricing conditions are favourable to secure their members' benefits."
The scheme was advised by Aon and Pinsent Masons, while Macfarlanes provided legal advice to L&G.
Aon principal consultant Michael Walker said: "This transaction completes the Hitachi UK Pension Scheme's phased buy-in journey in just under three years - substantially ahead of the original target of ten years.
"This acceleration has been possible due to strong asset performance, favourable insurance pricing, good preparation, and nimble decision making by both by the trustee and the companies."
Macfarlanes insurance partner Andrew Barton said: "We are delighted to have supported L&G once again on the completion of this significant transaction, helping them to establish a relationship with the Hitachi trustee and to complete the scheme's phased buy-in journey."
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...