Marathon Service (G.B.) Ltd. Pension and Life Assurance Scheme, London, insured £610 million ($798 million) in liabilities through a buy-in with Rothesay Life.
The plan's adviser, Akash Rooprai, who is director at Independent Trustee Services Ltd., confirmed that in its first risk transfer transaction the plan's sponsor, RockRose Energy PLC, secured the benefits for 740 retires and 700 plan participants who are yet to retire, covering all of the pension plan's liabilities.
Consultants Lane Clark & Peacock and Mercer as well as law firms Sackers & Partners and Herbert Smith Freehills advised RockRose and the trustees on the deal. Legal advice to Rothesay Life was provided by law firm Gowlings WLG.
"This transaction gives certainty for the members' pensions with an experienced and financially strong provider. The secondary benefit is that it has capped the financial risk to the sponsor," said Andrew Austin, chairman of RockRose, in a news release.
Ken Hardman, partner at LCP, added in the news release: "This transaction is a concrete example of identifying a market opportunity and being able to act quickly on it before market conditions revert."
