3i Group Pension Plan, London, completed a £200 million ($258 million) buy-in with Pension Insurance Corp., said a spokeswoman.
The deal covers 40% of retiree liabilities of the £1 billion defined benefit plan and is the plan's first buy-in.
“The plan has been derisking for a number of years, primarily by moving our asset mix to favor index-linked gilts. We are very pleased to have been able to complete this logical next step in our long-term derisking program. PIC demonstrated significant expertise while helping us to manage a complex project and ultimately deliver the transaction we required,” Carol Woodley, chairman of trustees, said in a news release.
Lane Clark and Peacock and Linklaters advised the plan's trustee on the transaction.
Michelle Wright, partner at LCP, added in the release: “The transaction has enabled the trustees to reduce risk on very competitive terms and is an excellent example of the attractive pricing that persists in the market for well-prepared pension plans.”
