Cancer Research U.K. Pension Scheme, London, completed a £250 million ($310 million) buy-in with Canada Life, covering all retirees in the plan.
The deal covers around a third of liabilities, said a news release by Lane Clark & Peacock, the lead adviser to the trustees of the pension fund.
The pension fund, which had £606.6 million in assets as of March 31, according to its latest annual report, funded the deal primarily with existing gilt holdings.
The deal continues the charity’s ongoing derisking plans. It reduced equities exposure in 2014 and increased exposure to assets moving broadly in line with its liabilities. It expanded on that strategy in early 2016. The pension fund was frozen in March 2015.
“We are pleased to secure a transacting that both improves the funding position of the pension scheme and reduces the risk of contributions needing to increase in the future,” said Ian Kenyon, chief financial officer at Cancer Research U.K., in the release.
“With this transaction Canada Life has established itself within the market for midrange buy-ins,” added Kenneth Hardman, partner in LCP’s insurance derisking team, in the release. “This adds further competition to this part of the market and provides extra insurer capacity to pension schemes looking to derisk through buy-ins and buyouts.”
Sacker & Partners also advised the trustee, and KPMG advised Cancer Research U.K.
Spokesmen for Cancer Research U.K. could not be reached for comment by press time. Further details from LCP were not available by press time.
