We have acted for both insurers and pension schemes in the market for pension deficit removal solutions, advising on traditional and innovative structures.
Pension scheme trustees often use bulk annuity buy-in arrangements with insurers to transfer risk under their pension schemes and we have considerable experience in this market. We have also advised on pensions solutions transactions involving longevity swaps and "transformer" structures as well as other innovative transactions such as deficit for equity swaps and the use of property-based partnerships.
The breadth of our knowledge and experience in this field means that we are able to advise on all aspects of the market for pensions solutions.
Our key experience includes advising:
AEGON Levensverzekering N.V. as one of the syndicate of reinsurers hedging the exposure of Deutsche Bank AG under its longevity swap with the Trustees of the Rolls-Royce Pension Fund.
Aviva on the de-risking of the Aviva Staff Pension Scheme by way of a circa £5 billion longevity swap transaction involving insurance and reinsurance arrangements.
BBA Aviation on the purchase by its pension plan trustees of a bulk annuity policy in respect of £300m of pensioner liabilities from Legal & General.
GlaxoSmithKline on a bulk annuity buy-in agreement between the trustees of two of its pension funds and the Prudential to insure the pension funds’ obligations to pay certain liabilities.
Imperial Chemical Industries Limited and Akzo Nobel N.V. on the de-risking of the ICI Pension Fund by way of a circa £3.6 billion transaction involving bulk annuity buy-in policies entered into with Legal & General Assurance Society Limited and Prudential Retirement Income Limited.
Prudential Retirement Income on a group bulk annuity buy-in policy with the Trustee of the Cable & Wireless Superannuation Fund for a premium in excess of £1 billion, covering approximately 5,000 members of the pension scheme.
Royal Philips on the de-risking of the Philips UK Pension Fund by way of a circa £2.4 billion transaction with Pension Insurance Corporation PLC (PIC) involving a bulk annuity policy. The transaction is expected to give rise to the largest full pension buy-out in the UK.
RSA on a transaction with Goldman Sachs and Rothesay Life involving the insurance of pension liabilities of RSA’s two main defined benefit pension schemes totalling £1.9 billion and representing 55% of the schemes’ liabilities in respect of pensions in payment.
Uniq on a solution for the deficit in the Uniq pension scheme involving restructuring by means of a deficit for equity swap.