Electricity North West Group, part of the Electricity Supply Pension Scheme, Peterborough, England, insured £805 million ($1.1 billion) in liabilities with Scottish Widows, confirmed Michael Walker, senior risk settlement adviser at Aon, adviser on the deal.
In its first buy-in deal, plan sponsor Electricity North West Ltd., which was also advised by KPMG, insured half of the pension fund's liabilities, Mr. Walker said. The asset size of the Electricity North West pension fund could not be learned.
David Brocksom, chief financial officer at Electricity North West, said in a news release: "The transaction represents a significant step in the long-term pensions derisking strategy, reducing material risk to our customers."
Malcolm Sugden, chairman of the trustee board for the pension fund, which was advised by law firm Sacker & Partners, noted in the news release that the pension plan's funding level has improved significantly in recent years and the transaction allows the company to provide security to the pension plan's participants.
Another member of the industrywide £42 billion Electricity Supply Pension Scheme, the £20 billion National Grid U.K. Pension Scheme, Binfield, England, insured £1.6 billion in liabilities through a buy-in with Legal & General Assurance Society in November and £2.8 billion in a buy-in with Rothesay Life in October.