Rexam Pension Plan, Hildenborough, England, has completed a £1.4 billion ($1.8 billion) full pension fund buy-in with Rothesay, a pensions insurance provider, according to a news release.
The pension fund is sponsored by Ball Corp., a supplier of aluminum packaging.
The transaction secures the benefits for more than 14,000 participants of the pension plan, which includes defined benefit liabilities for 9,790 retirees and dependents and a further 4,330 participants who are yet to retire.
The buy-in is a single-premium insurance policy covering residual risks, and no contribution was required from the plan sponsor.
The lead broker on the transaction was Aon. Willis Towers Watson provided actuarial advice and project management to the trustees. Rothesay and Rexam received legal advice from Eversheds Sutherland and Sackers & Partners, respectively.
"This is a significant milestone in our derisking journey, and we are delighted to have been able to achieve this outcome for members by working in collaboration with Rothesay," said Chris Martin, chair of trustees at Rexam.
"For such a complicated scheme, we adapted the broking process to develop creative solutions, allowing the trustee and company to meet all of their objectives," said John Baines, partner in the risk settlement group at Aon. "As the market continues to get busier, increasingly thorough preparation and setting out requirements which are carefully tailored to schemes' objectives will be the blueprint for achieving the best outcomes for members,"
In 2023, Rothesay wrote £12.7 billion of new business. This was the second highest yearly amount for Rothesay, behind 2019 when it recorded £16.3 billion in new business, the insurance firm said in an email.
