French multinational pharmaceutical and healthcare firm Sanofi has completed a £1.4 billion buy-in for its pension scheme.
The sponsoring employer, Aventis Pharma, is part of the Sanofi Group
Through a transaction with Legal and General, it has secured the benefits of 4,900 retirees and 5,600 deferred members. This follows a £760 million partial buy-in in 2021 and means that all members are now insured. The scheme benefited from an umbrella agreement established in 2021.
Aon was the risk settlement adviser to the trustee for the transaction, while legal advice was provided by CMS. Legal and General received legal advice from Slaughter and May.
Hannah Absolom, trustee secretary, said: “The trustee is delighted to have now achieved pension security for all members of the Sanofi pension scheme. The trustee selected Legal and General following a rigorous selection process and it has been a tremendous effort by all parties, with special thanks to Aon for leading the process, and to the CMS, XPS and Aptia teams in supporting the trustee through the transaction.”
Andrew Kail, chief executive officer of institutional retirement at Legal and General, added: “The buy-in with the Sanofi pension scheme strengthens our existing relationship with the client and creates greater security for its members.”
Mike Edwards, partner at Aon, said: “We have worked closely with the scheme to design and implement a robust risk settlement strategy and are pleased to have supported the trustee in achieving their objective of securing the benefits of all of the scheme’s members. The result here is an excellent outcome for the scheme’s members.”
Maria Rodia, partner at CMS, added: “It has been a pleasure bringing such a complex transaction to a smooth and successful conclusion in conjunction with the trustee’s other adviser teams, the scheme sponsor and Legal and General. The transaction improves security for scheme members, as well as reducing risk to the scheme and the employer group.”
