TUI Group U.K. Pension Trust, Luton, England, insured £794 million ($1.1 billion) in liabilities through two buy-ins with Legal & General Assurance Society.
Tourism group TUI conducted two transactions for two separate sections of its pension fund. The first was a £610 million buy-in deal for its BAL Scheme. The proportion of liabilities covered by the deal was not disclosed. The second, a £184 million buy-in, covered all liabilities for TUI's TAPS Scheme.
The two transactions are the first risk transfer deals for these two sections of the pension fund, a spokeswoman for consultant Lane, Clark and Peacock, adviser on the deal, confirmed.
"Working with the support of TUI, we ran a thorough process to select Legal & General and we are delighted to have achieved such a positive step for the benefit of our membership," Mike Roberts, chairman of the trustee board at independent trustee firm PAN Trustees, said in a news release.
Mr. Roberts added that the transaction concluded at an attractive pricing, providing increased security of benefits for plan participants.
The trustees were advised on the transaction by law firm Linklaters.
TUI was advised by consultant Isio and law firm Herbert Smith Freehills. Legal advice was provided to Legal & General by law firm Eversheds Sutherland.