Pirelli & C. SpA insured £100 million ($134 million) in liabilities with Pension Insurance Corp. through a pension buy-in, said a spokesman for Lane Clark and Peacock, which advised the sponsoring employer on the transaction.
The buy-in covers all the liabilities of three legacy defined benefit funds, the £65 million Pirelli General Executive Pension and Life Assurance Fund, the £35 million Pirelli Tyres Limited Executive Retirement Benefits Scheme and £5 million Pirelli General Overseas Retirement Benefits Scheme, all located in Burton-upon-Trent, England.
Tony Goddard, pensions manager at Pirelli, said in a news release: "The trustees are delighted to have been able to conclude this transaction, which has allowed us to secure the benefits for current and past employees of three separate schemes. The PIC team impressed us with their knowledge and dedication to finding solutions that worked for all parties."
The Italian tire manufacturer previously completed a longevity swap with Zurich, insuring £600 million in 2016. That transaction covered the liabilities of the Pirelli General Pension and Life Assurance Fund and the Pirelli Tyres Ltd. 1988 Pension and Life Assurance Fund.
Mercer, Hogan Lovells and Gowling WLG also advised Pirelli on the deal.
