Cadbury Mondelez Pension Fund, Birmingham, England, insured £520 million ($631 million) in liabilities through a buy-in with Rothesay Life, a spokesman confirmed.
Covering benefit payments for some 1,900 retirees, it is the second buy-in deal for the £4.5 billion pension fund. Following the first deal of £500 million in 2009, Aon PLC advised the plan again on the most recent deal.
"We're pleased to announce the next step in a long-term derisking strategy with the purchase of a buy-in policy with Rothesay Life, which provides an important contribution to the trustees' ongoing objective of reducing risk in the scheme and to increase the security for all members of the fund," Greg Chick, chairman of the trustees of the Cadbury Mondelez Pension Fund, said in a news release.
Pinsent Masons LLP and Gowling WLG also acted as advisers on the transaction.
