buyout

Strong asset gains and the closure of defined benefit schemes have made pensioner buy-in prices their most attractive since 2008, according to LCP research.

Scheme sponsors are increasingly transferring property to insurance companies in risk reduction deals as insurers develop innovative ways of taking on scheme liabilities, experts say.

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Pension schemes are expected to shift a further £20bn of liabilities to insurance companies and banks over the next 18 months, according to Hymans Robertson.

Wolfson Microelectronics is to close its defined benefit pension scheme to future accrual and is working with trustees to eliminate the scheme's £10m deficit within 10 years.

The final months of last year saw a dearth of buyout activity due to uncertainty stemming from a lack of Consumer Prices Index-linked instruments, Punter Southall says.

Favourable market conditions mean buyout prices are at their most reasonable since before the collapse of Lehman Brothers in 2008, Pension Insurance Corporation says.

The Radius Systems pension scheme has undertaken a full buyout with Rothesay Life in a deal below £100m.

Buyout deals totalled £8.1bn last year, with £1.6bn of this business written in Q4 alone, research by JLT Pension Capital Strategies shows.

Pension Corporation saw a £54m reduction in new business value last year due to quieter market conditions, preliminary results show.