Pension Capital Strategies research: Pensions buyouts total £2.2 billion

Pensions buy-outs totalled approximately £2.2. billion in the second quarter of 2010, according to figures from Pension Capital Strategies.

Rothesay Life confirmed the completion of the largest buy-in deal completed during 2010 with the £1.3 billion buy-in of pension liabilities of the British Airways pension scheme. This deal followed the same format of the RSA buy-in, with the trustees retaining ownership of the assets.

Despite no new longevity swap deals being announced during the second quarter, there remains significant interest from both trustees and sponsoring employers, with one insurer quoting on a pipeline of £5.5 billion during the second quarter.

Tiziana Perrella, head of buy-out services at Pension Capital Strategies, said: “It has been a buoyant first half of 2010, with £6.3 billion of business transacted including longevity swaps. This is further evidence of sponsors’ keenness to de-risk defined benefit schemes.

“We believe the market will remain active throughout 2010, with transactions of around £1.5 billion likely for the remaining two quarters pushing total deals for the year to £10 billion or possibly higher.”

Read more articles on buyouts of pension schemes