DB (U.K.) Pension Scheme, London, insured £400 million ($493 million) in liabilities through a buy-in with Aviva, a spokeswoman at consultant Lane Clark & Peacock, adviser on the deal, confirmed.
The deal covered the liabilities for nearly 1,300 U.K. employees of Deutsche Bank. The plan has £2.5 billion in assets.
"This latest transaction enables Deutsche Bank to hedge a material portion of the liabilities of scheme, with the majority of pensions currently in payment now insured. It is another step on our ongoing journey to reduce risk in relation to our defined benefit pension obligations, benefiting the scheme members, the trustee board and the bank," Jeremy Sowden, head of pensions and benefits U.K. and Ireland at Deutsche Bank, said in the release.
Michael Wrobel, chairman of the pension fund trustees, added in the release: "The extensive work the trustee, bank and our advisers have undertaken to date means the scheme is well positioned to take advantage of future opportunities to further derisk as they arise."
In 2021, the DB (U.K.) Pension Scheme insured £570 million in liabilities through a buy-in with Legal & General Assurance Society. The total percentage of liabilities now covered could not be learned.
The trustees were also advised by law firm CMS Cameron McKenna Nabarro Olswang.