PIC insures Philips Pension Fund in largest full buyout

Pension Insurance Corporation (“PIC”), a specialist insurer of defined benefit pension funds, has concluded a circa £2.4 billion pension insurance buyout with the Trustees of the Philips UK Pension Fund ("the Fund"). The transaction covers the pension benefits of around 26,000 UK pension scheme members. A key feature of the transaction is simultaneous reinsurance of the longevity risk by PIC with Hannover Re, including an unprecedented level of non-retired members. 

Philips is a diversified health and well-being company, focused on improving people’s lives through meaningful innovation in the areas of Healthcare, Consumer Lifestyle and Lighting. Headquartered in the Netherlands, Philips employs approximately 106,000 employees with sales and services in more than 100 countries.

David Jordan, Chairman of Trustees, said: “This has been a complex transaction given the size and history of the Fund. I want to thank Philips for their support and PIC for their hard work and flexibility in securing these pension liabilities for the long-term.”

Jay Shah, Head of Origination at PIC, said: “Increasingly, we are seeing multi-national organisations successfully settling their pension obligations through pension insurance arrangements such as this. It is becoming part and parcel of modern commercial thinking. We are delighted to have worked with Philips on this ground-breaking arrangement.

“This has been a very successful year so far for PIC with £3.5 billion of new business written to date, taking our assets under management to more than £16 billion”.

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Notes to Editors:

For further information please contact:

Pension Insurance Corporation

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