ICI Pension Fund, London, completed a buy-in transaction with Scottish Widows covering £630 million ($898 million) in pension liabilities.
To date, the £10 billion pension fund has completed eight buy-in transactions covering a total of £6.3 billion of liabilities, or 60% of the pension fund’s total liabilities, said Charlie Finch, partner at Lane Clark & Peacock, which advised the pension fund on the deals.
The earlier deals were completed with Legal & General and Prudential.
Scottish Widows, the insurance arm of Lloyds Banking Group, has been added to the pension fund’s panel of insurers, along with Legal & General and Prudential. The panel helps the pension fund execute further buy-ins quickly when competitive pricing is available from any of the three insurers, said LCP in an announcement on its website.
ICI marks Scottish Widows’ largest bulk annuity transaction to date, the insurer said in a news release.
A spokeswoman for ICI’s parent company, AkzoNobel Group, could not immediately be reached for additional information.