ICI has completed a £900 million pensions buy-in deal.
The transaction, which was carried out with Legal and General Assurance Society, has secured the benefits of more than 7,000 retired members. The fund was able to meet its de-risking objectives as part of its long-standing relationship and collaborative approach with the provider.
This is the 12th pensions-related transaction for the fund after entering into an umbrella agreement with Legal and General in 2014. It has since completed transactions that total £7 billion and covers around 70% of the fund’s total liabilities.
Lane Clark and Peacock and Allen and Overy provided the fund trustee with advice on all 12 of its buy-ins, while Macfarlanes gave legal advice to Legal and General.
Heath Mottram, chief executive of Pensions Secretariat Services, added: “The trustee of the ICI Pension Fund is delighted to have completed this further buy-in transaction with Legal and General. The trustee values its ongoing relationship with Legal and General as it continues its journey to secure the benefits of all of the fund members.”
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Andrew Kail, chief executive officer of Legal and General Retirement Institutional, added: “We are pleased to have deepened our relationship with the ICI Pension Fund in the most recent transaction. It highlights how well-advised pension schemes can achieve great results when they have a deep, collaborative, and trusted relationship with an insurer. We look forward to continuing to work closely with the fund to secure its members’ pension liabilities.”
Clive Wellsteed, partner at Lane Clark and Peacock, said: “In a busy market dominated by full buy-ins, this pensioner-only transaction shows how a well-prepared scheme with a de-risked investment strategy can successfully insure benefits over time to achieve its objectives.”