U.K. department store Jarrold & Sons Ltd., Norwich, England, insured £19 million ($25 million) in liabilities of its defined benefit plan with Aviva, said Ben Fowler, managing director of Western Pension Solutions.
The transaction, which covers 500 members, was the £34 million pension fund's first buy-in. Mr. Fowler, the consultant advising the pension plan trustees, said in an interview the deal was the first step toward the fund's long-term derisking strategy. He added that the price was right for the plan to conduct the activity now.
Christopher Doggett, finance director for Jarrold & Sons, said in a news release: "We are very pleased with this outcome. This was our first insurance transaction and marks another important step towards our ultimate goal of fully securing the futures of our scheme members and providing longer-term stability for shareholders."
The pension fund's trustees were also advised by actuarial consultant Barnett Waddingham, employee benefits consultant Berkeley Burke & Co., and legal firm Mills & Reeve.
