Pension Insurance Corporation has completed a £230 million pension insurance “buy in” with the trustee of the Pilkington Superannuation Scheme – part of the multinational glass manufacturing firm.
According to a report at ProfessionalPensions.com, the deal will apply to all new members who entered after it insured £1 billion of liabilities against unexpected longevity increases back in 2011.
Reuters reports that deals to pass on some of the insurance risk of defined benefit company schemes though buy-ins are often easier to price than a deal for the complete risk: known as a buy-out.
While there were no specific numbers given as to the members covered in the transaction, actuary Uzma Nazir commented to Reuters that an interesting trend is developing in the market.
“There has been a tangible increase in interest from trustees in buy-ins since the Brexit referendum and we have completed a number of transactions over the past few weeks and expect more to follow,” he said.
The deal is comparatively small for Pension Insurance Corporation, which secured a £900 million buy-in with the trustees of
Aon Retirement Plan back in May.
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