PIC completes second buy-in with Clarks Footwear Pension Fund covering all £820 million of liabilities

PIC, a specialist insurer of defined benefit pension schemes, has concluded a second buy-in with the Trustee of both the C&J Clark Pension Fund – CJC Section and Flexible Section ('the Fund') for £540 million. It follows the Fund’s first buy-in with PIC for £280 million in 2022. PIC has now insured all £820 million of the Fund’s defined benefit liabilities. The latest buy-in secures the pensions of almost 5,000 pensioners and dependants and over 3,000 deferred policyholders.

The Fund is sponsored by C&J Clark International Limited ('the Company'). The Company, trading as Clarks, is a famous British footwear retailer founded in 1825 by Cyrus and James Clark in Street, Somerset, where its headquarters remain. The Clarks brand owns over 500 stores around the world, as well as hundreds of franchises located globally.

Libby Edwards, Chair of the Fund, said: “We’re delighted to have completed this transaction with PIC, which secures the long-term security of all our members’ benefits. Our experience of PIC’s customer service following the previous transaction meant choosing to work with them again was an easy decision.”

Philip Yau, Chief Financial Officer at Clarks, said “We are pleased to achieve our long-standing ambition to fully buy-in the C&J Clark Pension Fund which is a major step in fully securing members’ benefits at the same time as eliminating pension related balance sheet volatility. We would like to thank the Fund Trustee and the support of all the advisers for their hard work in achieving this milestone.”

Deepash Amin, Head of New Business Strategy at PIC, said: “It is always rewarding to complete repeat business with clients who have had first-hand experience of our exceptional customer service. We are delighted to have extended our relationship with the Fund and its members. It has been a pleasure working with the Trustees and their advisers to secure this transaction.”

Michael Abramson, Partner at Hymans and lead adviser to the Trustee, said: “The buy-in represents a positive step in the management of the Fund as part of the good work of the Trustee in continuing to implement its de-risking strategy for the members with support from the Company. The key to success was early engagement with the insurers, setting out a clear set of objectives so that the Trustee was able select the right partner for their members.”

Isio led the advice to the Company with legal advice from Burges Salmon. The Trustee received legal advice from Travers Smith, investment advice from WTW and covenant advice from Penfida. PIC was advised by CMS.

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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 half year 2024, PIC had insured 348,600 pension scheme members and had £47.7 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. At 30 June 2024, PIC had made total pension payments of £14.9 billion to its policyholders and had invested more than £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