Pension Insurance Corporation, PIC, has completed a second buy-in with the trustee of the TotalEnergies UK Pension Plan for £1.2bn ($1.52bn).
The TotalEnergies deal with PIC is the largest completed buy-in so far this year.
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It follows the Plan’s first buy-in with PIC for £1.6bn in 2014. PIC has now insured all £2.8bn of the Plan’s defined benefit liabilities.
Furthermore, the latest buy-in secures the pensions of over 2,000 pensioners and dependants and 3,500 deferred policyholders.
Rob White, chair of the plan, said: “Securing the benefits for our members has been the aim of the Trustee for many years. We are pleased to have reached this milestone by extending our existing relationship with PIC. I would like to thank TotalEnergies, PIC, and our advisers for their collaborative and flexible approach in what was a complex and challenging transaction.”
Tristan Walker-Buckton, co-head of origination at PIC, said: “It has been a pleasure working with the Plan and its advisers on securing this complex deal. Repeat transactions such as this rely on the excellent relationships fostered, in this case over a decade ago, with the aid of LCP. I would expect to see more schemes in the market complete repeat transactions, such as this, when pricing objectives have been met.”
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By GlobalDataYadu Dashora, partner at LCP and lead adviser to the Trustee and Company, said: “We are delighted to have helped the joint working group secure another buy-in. Much has changed in the last ten years since the Plan’s first buy-in was concluded. Whilst large transactions are more common now, they usually have their own intricacies – this one had unique structuring requirements and a complex benefit structure reflecting the legacy of the Company’s business. But as ever, a combination of good preparation and close collaboration between all parties, meant we were able to overcome these challenges and negotiate this sizeable transaction with PIC, achieving a really attractive outcome for the Plan.”
Earlier in 2024, finished a full scheme buy-in of all the Epson Telford Limited Pension & Assurance Scheme for £50m ($62m).
The PIC transaction secured the pensions of all 368 pensioners and 493 deferred members employed by Epson Telford.
Epson Telford is the only European manufacturing and distribution site for ink cartridges and textile inks.
