The ICI Pension Fund, London, completed a pension buy-in with Legal & General and Scottish Widows securing £980 million ($1.27 billion) of liabilities.
Legal & General took on £390 million in liabilities, while Scottish Widows insured £590 million, an AkzoNobel spokeswoman said.
AkzoNobel, a global paints and coatings company based in Amsterdam, acquired Imperial Chemical Industries, a British chemicals company, in 2007.
ICI’s pension fund has completed five buy-ins this year, insuring more than £2.5 billion in liabilities over the period, said Lane Clark & Peacock, lead adviser on the transaction, in a news release.
In total, ICI has completed 11 pension buy-in transactions covering more than £8 billion in pension liabilities. The pension fund had £9.3 billion in assets as March 31.
“We are delighted that the fund continues to benefit from competitive pricing on a frequent and ongoing basis due to the strength of our governance and unique contract documentation,” Heath Mottram, CEO of ICI Pension Fund, said in the news release.
“We see this becoming a blueprint for how larger schemes will insure their liabilities at scale through buy-ins in the future,” Mr. Mottram said.
