Selecta insures $343 million in pension liabilities

Selecta U.K. Pension Plan, London, insured £250 million ($343 million) in liabilities through a full buy-in with Legal & General Assurance Society, according to a spokeswoman at U.K. consultant Hymans Robertson, lead adviser on the deal.

The transaction, which is the plan's first risk transfer deal, allowed trustees to secure benefit payments for 1,000 retirees and 1,000 plan participants yet to retire.

The funding level of the coffee and vending machine operator's pension fund had improved materially over recent years due to strong investment performance, the spokeswoman added in an email.

This deal coincided with a quieter than usual start to the year in the bulk annuity market, representing an opportunity for the plan to get competitive pricing, she said.

"This buy-in is the culmination of a long journey of incremental de-risking steps to improve the security of the plan. Hymans Robertson identified a market opportunity and helped us move quickly to take advantage of it through a well-run process, securing excellent terms with Legal & General and significantly improving security for our members," Dinesh Visevadia, director at Independent Trustee Services, who is trustee to the plan, said in a news release Wednesday.

In addition to Hymans Robertson, legal advice was provided to the trustee by Pinsent Masons and to Legal & General by Macfarlanes. The plan sponsor was advised by PricewaterhouseCoopers.