Merchant Navy Officers Pension Fund, Surrey, England, insured £490 million ($656 million) in pension liabilities through a buy-in with Legal & General, a spokesman said.
The latest risk transfer for MNOPF follows a £1.5 billion longevity insurance transaction in 2014. The latest deal covers all the fund's retirees since the transaction in 2014.
The £3 billion pension fund also completed three buy-ins — a £500 million buy-in in 2009 and £100 million in 2010 with Lucida, which was acquired by Legal & General in 2013, and a £680 million buy-in with Rothesay Life in 2012. The 2010 buy-in turned into a pension buyout.
The pension fund was frozen in 2016.
Rory Murphy, chairman of MNOPF, said in a news release, "This buy-in enables us to more effectively manage the risks faced by the fund as a whole. It is also good news for employers in the maritime and shipping industry, who have already saved many millions in deficit contributions over recent years as a result of our improved funding position."
Willis Towers Watson and Baker McKenzie advised MNOPF on the transaction.