PIC completes further £400 million buy-in with MNOPF, insuring in total £2 billion of scheme liabilities

Pension Insurance Corporation plc ('PIC'), a specialist insurer of defined benefit pension funds, has signed a further buy-in with the Trustee of the Merchant Navy Officers Pension Fund ('MNOPF'), covering £400 million of liabilities, representing the benefits of close to 2,000 MNOPF pensioners. This buy-in builds on a previous £1.6 billion transaction completed in February 2020, in which PIC secured the pensions of around 14,000 members by converting a longevity swap held between MNOPF and Pacific Life Re.

The MNOPF is an industry-wide pension scheme established in 1937 to allow shipping companies to provide retirement and death benefits for their officers.

MNOPF Chair, Rory Murphy, said: “This buy-in is a further key stage in our long de-risking journey. This buy-in helps to provide greater certainty to members about the security of their benefits and we are delighted to have completed it with PIC, who we know well from our existing transaction.”

Uzma Nazir, Head of Origination Structuring at PIC, said: “We worked closely with the Trustee over several months to actively monitor market conditions and ensure that we were able to transact quickly once market conditions were favourable. We were proud to complete the original buy-in with the MNOPF and are delighted that we have been selected as their partner once again.”

Nadine Reid, Director at WTW, who led the advice to the Trustee, said: “We were very pleased to help the Trustee to secure another buy-in for members of the MNOPF, extending their partnership with PIC.  The MNOPF Trustee is dynamic and open to innovation, which has enabled them to secure another important de-risking step by seizing a transaction opportunity when it arose.”

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Notes to Editors:

For further information please contact:

Pension Insurance Corporation      

Jeremy Apfel                         
+44 (0)20 7105 2140
apfel@pensioncorporation.com

Apella Advisors                                

Andrew Brown                      
+44 (0)7721 513777

Janelle Romano                     
+44 (0)7792 173071           
PIC@apellaadvisors.com

MNOPF                           

Andy Fleming (Rock Pensions)
+44 (0) 7740 802 601

About Pension Insurance Corporation
The purpose of Pension Insurance Corporation (“PIC”) plc is to pay the pensions of its current and future policyholders. PIC provides secure and stable retirement incomes through leading customer service, comprehensive risk management and excellence in asset and liability management. At half-year 2021, PIC had insured 270,800pension scheme members and had £47.6 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