PIC insures second tranche of the Aon Minet Pension Scheme

Pension Insurance Corporation (“PIC”), a specialist insurer of defined benefit pension funds, has concluded a second pension insurance buy-in with the Trustees of the Aon Minet Pension Scheme ("the Scheme"). This transaction covers around £210 million of pensioner liabilities. The earlier transaction, completed in July 2012, covered pensioner liabilities of circa £100 million. The lead advisor to the Trustees on the transaction was Aon Hewitt, with legal advice provided by Hogan Lovells. PIC was advised by Herbert Smith Freehills.

Aon Hewitt used its Bulk Annuity Market Monitor to track live pricing of annuities and to identify the right time to trade. This meant that the Trustees were able to take advantage of the opportunity to lock in to terms that compared favourably with their long-term funding measure.

Robert Dickinson CBE, Chairman of Trustees, said: “This transaction marks the next stage on in our de-risking journey. I am delighted that, despite the turbulence in the markets during the past few weeks, we were able to move ahead with the transaction. I would like to thank the Aon Hewitt team that led the deal and were instrumental in ensuring the transaction could be completed so quickly, as well as our legal advisers, Hogan Lovells. We chose PIC following a competitive market review. Our experience with them on the previous tranche and their competitive and flexible proposal for this tranche supported our decision.”

Paul Belok, partner at Aon Hewitt, said: "Timing in relation to this transaction was critical, particularly given the volatility seen recently in markets. The use of live price tracking is a service we see increasingly in demand, in particular where Trustees and Sponsors have specific trigger points for transactions. We are able to track pricing using Risk Analyzer, Aon Hewitt’s online valuation, monitoring and risk analytics system, which is a key feature of our recently launched Implemented Annuities service.”

Uzma Nazir, Actuary at PIC, said: “The Aon Minet scheme trustees have taken further steps to de-risk. Doing this in tranches, rather than waiting until full buyout funding is achieved, is becoming an increasingly common approach. We are delighted that the trustees chose PIC again.” 

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Notes to Editors:

For further information please contact:

Pension Insurance Corporation
Jeremy Apfel
+44 20 7105 2140
apfel@pensioncorporation.com

About Pension Insurance Corporation
Pension Insurance Corporation (“PIC”) provides tailored pension insurance buyouts and buyins to the trustees and sponsors of UK defined benefit pension funds. PIC brings safety and security to scheme members' benefits through innovative, bespoke insurance solutions, which include deferred premiums and the use of company assets as part payment. PIC has more than £11bn in assets and has insured 100,000 pension fund members. Clients include FTSE 100 companies, multinationals and the public sector. PIC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority (FRN 454345). For further information please visit www.pensioncorporation.com.

About Aon Hewitt Aon
Hewitt empowers organisations and individuals to secure a better future through innovative talent, retirement and health solutions. We advise, design and execute a wide range of solutions that enable clients to cultivate talent to drive organisational and personal performance and growth, navigate risk while providing new levels of financial security, and redefine health solutions for greater choice, affordability and wellness. Aon Hewitt is the global leader in human resource solutions, with over 30,000 professionals in 90 countries serving more than 20,000 clients worldwide. For more information on Aon Hewitt, please visit www.aonhewitt.com