The UK's Rexam Pension Plan has completed a GBP 1.4bn full scheme buy-in with Rothesay securing the benefits for over 14,000 members, including 9,790 pensioners and dependants, and 4,330 deferred members.

As reported by our sister publication Pensions Age, the buy-in was a single premium insurance policy covering residual risks and no contribution was required from the sponsor, Ball Corporation.

Aon acted as the lead broker on the deal, while WTW provided actuarial advice and project management to the trustee, and LCP acted as the plan's investment advisers.

Rothesay and the scheme received legal advice from Eversheds Sutherland and Sackers, respectively, while A&O provided the company with legal advice.

Having agreed to structure the insurance premium as a specified pool of assets owned by the scheme, the economics of the transaction were fixed in August 2023, after which the scheme trustee, sponsor, Aon and Rothesay worked together to underwrite the residual risks of the scheme.

Trustee chair and Independent Governance Group executive chair, Chris Martin, highlighted the deal as a “significant milestone” in the scheme’s de-risking journey, stating: “I would particularly like to thank my colleagues on the trustee board and within Ball Corporation, including the fantastic in-house pensions department, as well as the plan’s excellent advisory teams for their collaborative and diligent approach which enabled the delivery of such a great result."

Adding to this, Aon risk settlement group partner, John Baines, said: “For such a complicated scheme, we adapted the broking process to develop creative solutions, allowing the trustee and company to meet all of their objectives.

"As the market continues to get busier, increasingly thorough preparation and setting out requirements which are carefully tailored to schemes’ objectives will be the blueprint for achieving the best outcomes for members.”

Rothesay business development, Cleo Taylor Smith, added: “From our first meeting with the scheme and sponsor it was clear that there was a strong cultural fit between our organisations and we are delighted to have worked so collaboratively together to secure the future for over 14,000 members. It has been a pleasure to work with the trustee to reach such a successful outcome."

“Last year was one of Rothesay’s busiest ever, with GBP 12.7bn marking the second largest volume of annual new business we’ve ever completed. 2024 is looking equally, if not more, exciting with a currently unprecedented pipeline."

Indeed, recent industry estimates have suggested that the UK defined benefit (DB) pension risk transfer market is set for another record year in 2024, with an estimated GBP 80bn in pension de-risking transactions expected to take place in 2024.

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