PIC completes second buy-in with the TotalEnergies UK Pension Plan, now covering all £2.8 billion of liabilities

PIC, a specialist insurer of defined benefit pension schemes, has concluded a second buy-in with the Trustee of the TotalEnergies UK Pension Plan ('the Plan') for £1.2 billion. The transaction is the largest completed buy-in announced to date this year. It follows the Plan’s first buy-in with PIC for £1.6 billion in 2014. PIC has now insured all £2.8 billion of the Plan’s defined benefit liabilities. The latest buy-in secures the pensions of over 2,000 pensioners and dependants and 3,500 deferred policyholders.

The Plan is sponsored by TotalEnergies ('the Company'), a global integrated energy company that produces and markets energies: oil and biofuels, natural gas and green cases, renewables and electricity. It employs more than 100,000 people and is active in around 120 countries.

Rob White, Chair of the Plan, said: “Securing the benefits for our members has been the aim of the Trustee for many years. We are pleased to have reached this milestone by extending our existing relationship with PIC. I would like to thank TotalEnergies, PIC, and our advisers for their collaborative and flexible approach in what was a complex and challenging transaction.”

Tristan Walker-Buckton, Co-Head of Origination at PIC, said: “It has been a pleasure working with the Plan and its advisers on securing this complex deal. Repeat transactions such as this rely on the excellent relationships fostered, in this case over a decade ago, with the aid of LCP. I would expect to see more schemes in the market complete repeat transactions, such as this, when pricing objectives have been met.”

Yadu Dashora, Partner at LCP and lead adviser to the Trustee and Company, said: “We are delighted to have helped the joint working group secure another buy-in. Much has changed in the last ten years since the Plan’s first buy-in was concluded. Whilst large transactions are more common now, they usually have their own intricacies – this one had unique structuring requirements and a complex benefit structure reflecting the legacy of the Company’s business. But as ever, a combination of good preparation and close collaboration between all parties, meant we were able to overcome these challenges and negotiate this sizeable transaction with PIC, achieving a really attractive outcome for the Plan.”

LCP acted as lead transaction adviser for the Trustee and Company. The Trustees received legal advice from Sackers and the Company received legal advice from CMS. PIC was advised by Addleshaw Goddard.

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Notes to Editors:

For further information please contact:

PIC
Clive Booth
+44 (0) 7780 599247
boothc@pensioncorporation.com

Apella Advisors
Arne Wysny
+44 (0) 7818 497469
PIC@apellaadvisors.com

About PIC

The purpose of PIC is to pay the pensions of its current and future policyholders. PIC provides secure retirement incomes through comprehensive risk management and excellence in asset and liability management, as well as exceptional customer service. At year end 2023, PIC had insured 339,900 pension scheme members and had £46.8 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. PIC has made total pension payments of £13.6 billion to its policyholders and has invested £13 billion in the UK economy, creating considerable social value. 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