United Utilities Group PLC, Warrington, England, insured £1.8 billion ($2.3 billion) in liabilities for its pension funds through a buy-in with with Legal & General, a spokeswoman for the company confirmed.
The deal covers the benefits of United Utilities Pension Scheme and the United Utilities PLC Group of the Electricity Supply Pension Scheme, according to a news release on the water supply company's pension fund website.
"The policy will provide certainty over future benefit payments, as the insurance company will insure risks associated with the future investment returns and life expectancy of around two thirds of members' pension liabilities," the website said.
The transaction was the first risk transfer deal for the pension funds, the spokeswoman said.
