PIC completes £725 million buy-in with Dock Workers Pension Fund

London, 30 November 2017 – Pension Insurance Corporation plc (“PIC”), a specialist insurer of defined benefit pension funds, has concluded a £725 million full buy-in with the Trustee of the Former Registered Dock Workers Pension Fund. Together with existing insurance policies, the transaction completely removes risk in respect of the Fund’s pension liabilities.

The transaction benefitted from significant preparatory work undertaken by the Fund, putting it in a position where the Trustee could move quickly to secure attractive pricing and obtain comprehensive risk cover. Unusually, the transaction was funded entirely from the Fund’s assets without need for further contributions from the sponsoring employers.

The Trustee was advised by Lane Clark and Peacock (LCP), the lead adviser for the transaction, Hogan Lovells on legal matters, Pi Consulting as the Fund Secretary and Aon Hewitt on funding and administration. The sponsoring employers were advised by KPMG. PIC was advised by Herbert Smith Freehills.

The Former Registered Dock Workers Pension Fund is a multi-employer pension scheme covering dock workers and ex-dock workers who have worked for a number of ports and shipping organisations across the UK.

Ian Forrest, Chairman of the Trustee said: “We are delighted to have secured the benefits for all members in full with an established, UK regulated insurance company. The Trustee is grateful to its various advisers for preparing the Fund to achieve this full buy-in, and to PIC for dealing with the transaction so efficiently.”

Uzma Nazir, Head of Origination Structuring at PIC said: “PIC is very pleased to have provided the trustees with insurance to secure the pension benefits for the members of the Fund.  The Fund was in a good position having de-risked the assets over several years. We were able to accept the Fund’s assets as payment of the premium, which gave the Trustee certainty on price. We were also happy to offer the Trustee flexibility where needed and a commitment to outstanding policyholder care, which is something we at PIC pride ourselves on.”

Ken Hardman, partner in LCP’s specialist de-risking practice, said: “This demonstrates the benefit of investing in work up front, which enabled even a complex transaction such as this to be carried out quickly and efficiently.  Pricing has improved markedly due to lower longevity expectations and increased insurer competition, and the Fund was able to seize this opportunity.”

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Notes to Editors:

For further information please contact:

Pension Insurance Corporation 

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

Teneo Blue Rubicon

Anthony Silverman
+44 (0)20 7260 2700
anthony.silverman@teneobluerubicon.com

About Pension Insurance Corporation
Pension Insurance Corporation plc (“PIC”) is a leading provider of buy-ins and buyouts to the trustees and sponsors of UK defined benefit pension schemes. At half year 2017, PIC had insured 145,400 pension fund members and had £24.2 billion in financial investments, accumulated through the provision of tailored pension insurance buyouts and buy-ins to the trustees and sponsors of UK defined benefit pension schemes. 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 LCP

LCP is a firm of financial, actuarial and business consultants, specialising in the areas of pensions, investment, insurance and business analytics.

LCP offers clients better control over the financial future of their pension schemes with intuitive, real-time technology.  Visit www.lcpvisualise.com and LCP Cloud for more information.

Clients include 3i, Barnardo’s, Hilton Worldwide, Lenovo, NM Rothschild & Sons, Smith & Nephew, Tate & Lyle, UNISON, Volkswagen and Whitbread.

The firm has more than 500 staff based at locations in London, Winchester, Ireland, and the Netherlands.  Visit www.lcp.uk.com for further information.

About LCP’s pension de-risking practice

LCP leads the way in helping pension schemes to de-risk. Over 2016 LCP was the lead adviser on 12 of the 24 buy-ins and buy-outs over £100m.  LCP has continued to lead the market over 2017 with headline transactions including the £1.2bn buy-in for Pearson’s pension plan and a £560m buy-in for the Plumbing and Mechanical Services Industry Pension Scheme. 

Download Press release - PIC Insures Dock Workers Pension Fund FINAL Nov 2017.pdf (150kb)