Pension Insurance Corporation (PIC) has completed an £870m ($1.1bn) full buy-in of the De Beers UK Pension Scheme.
The transaction between PIC and De Beers secures the pensions of both deferred and pensioner members of the scheme. This is made up of 1,464 current pensioners and 473 deferred members.
Mike Page, Chair of Trustees for the Scheme, said: “This buy-in is the result of many years of hard work as we pursued a long-term de-risking strategy. I want to thank my fellow Trustees and our professional advisers, Hymans Robertson, Barnett Waddingham and Linklaters for their role throughout the process in scoping and executing the transaction, which further increases the security of Scheme members’ benefits. PIC was selected for its flexibility and ability to complete the transaction in volatile markets, as well as its overall track record, including a deep-seated commitment to customer care.”
Tristan Walker-Buckton, co-head of origination at PIC, continued: “PIC is proud to have worked with the Trustees of the De Beers UK Pension Scheme to de-risk the Scheme, removing the risk associated with the Scheme from the Company’s balance sheet, and providing security to all their members for the long-term. 2024 has started strongly in the pension risk transfer market and we expect another record-breaking year.”
Dr Richard Wellard, partner at Hymans Robertson, added: “We are pleased to have been able to help the Trustees secure their members’ benefits and achieve their goal. It reflects the vibrant bulk annuity market, but also the preparedness of the Scheme, which is a vital factor in ensuring that insurers focus on a particular transaction over the many other opportunities brought to them.”
Founded in 1888, De Beers Group is the world’s leading diamond company, with expertise in diamond exploration, mining, grading, marketing, and retail.
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By GlobalDataIn addition, it employs more than 20,000 people throughout the world.
PIC was advised on the De Beers deal by CMD Cameron McKenna Nabarro Olswang while De Beers was assisted by Linklaters.
These schemes total £50m ($63.8m) and entered PPF assessment in September 2019 following the liquidation of Thomas Cook Group.
The buy-ins secure the liabilities of 520 members across the schemes to receive benefits at, or above Pension Protection Fund (PPF) compensation levels.
