Imperial Chemical Industries Pension Fund completes £750m buy-in


Imperial Chemical Industries (ICI) Pension Fund has completed a £750 million pension buy-in transaction with Legal and General.

Of the pension scheme’s £11 billion of total liabilities, £7 billion-worth of liabilities are now insured.

This transaction follows similar buy-ins with both Scottish Widows and Prudential.

Since 2014, the ICI Pension Fund and Legal and General have executed £5 billion in pension risk transfers.

The latest buy-in agreement was finalised eight working days after the EU referendum vote, with the resulting market fluctuations reducing the cost of the transaction by an estimated £10 million.

Allen and Overy and financial, actuarial and business consultancy organisation LCP advised the ICI Pension Fund on the buy-in.

Heath Mottram, chief executive officer at the ICI Pension Fund, said: “The Fund’s strong governance and ability to move quickly was invaluable in taking advantage of this opportunity to further de-risk the Fund. This was our ninth transaction since March 2014.”