Aon Minet Pension Scheme, Bristol, England, completed a second pension buy-in with Pension Insurance Corp., covering £210 million ($336 million) of liabilities, said Paul Belok, partner at Aon Hewitt, the lead adviser to the pension fund’s trustees.
It is the pension fund’s third buy-in overall.
Mr. Belok said this deal followed a buy-in covering about £100 million in 2012, also with PIC, and one in 2009 with Legal & General covering about £140 million. The latest agreement brings the total liabilities covered to about £450 million, which Mr. Belok said covers just more than half of the pension fund’s total liabilities. He said liabilities for all retirees in the £750 million pension fund have now been covered through bulk annuity transactions.
“This transaction marks the next stage in our derisking journey,” said Robert Dickinson, chairman of trustees, in a news release from PIC. “I am delighted that, despite the turbulence in the markets during the past few weeks, we were able to move ahead with the transaction.”
Hogan Lovells provided legal advice to the trustees. PIC was advised by Herbert Smith Freehills.