LCP advises the Marks & Spencer Pension Scheme on two buy-ins totalling £1.4bn

24 May 2019

Lane Clark & Peacock publishes on its website:

“LCP has advised the Trustee of the Marks & Spencer Pension Scheme (the Scheme) on the purchase of two pensioner buy-in policies with Phoenix Life and Pension Insurance Corporation (PIC) totalling approximately £1.4bn. The buy-in with PIC (£900m) is the largest pensioner buy-in executed by any pension scheme so far this year.

These transactions follow execution of two similar buy-ins in March 2018 with Aviva and Phoenix Life.

LCP’s role as execution adviser on all these transactions has been part of its wider appointment to advise the Trustee on its strategy to reduce the Scheme’s longevity risk. Linklaters provided legal advice for the transactions.

All buy-ins purchased to-date by the Trustee have been executed using umbrella master agreements and transaction schedules, allowing the Trustee to move quickly to purchase additional buy-ins when pricing opportunities arise. This structure meant the second buy-in with Phoenix Life was executed in minimal time and at minimal execution cost, demonstrating the efficiency of the approach. The Trustee was therefore able to focus on bringing in PIC as a new insurer, while meeting demanding deadlines in turbulent markets earlier this year.”

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