In November 2020, the Trustee of the Lovell Pension Scheme (“Lovell Scheme”), after consultation with the Scheme sponsor, Renew Holdings plc (“the Group”), entered into a £110m buy-in transaction with Rothesay.
- The buy-in policy is in respect of all pensioner and deferred members not included in the previous buy-ins undertaken by the Lovell Scheme in 2011 and 2016.
- While the Group remains legally responsible for the Lovell Scheme, the transaction means all of the Lovell Scheme’s known liabilities will now be matched with corresponding annuities, thereby eliminating the Group’s exposure to investment and funding risks in the Lovell Scheme.
Geoff Ashton, Chair of Lovell Scheme Trustees, said:
“This key transaction will enable us to draw an early conclusion to a well-executed strategy. It is a privilege to work with a very supportive sponsor in Renew, such a focussed Trustee Board, and a coordinated set of skilled advisers. We have all worked so well together to take a Scheme that not so long ago had funding challenges to a position where we can fully secure all the members’ benefit entitlements. This demonstrates what can be achieved when all are focused on an objective that they appreciate is in the interests of all the stakeholders.”
Sean Wyndham-Quin, Renew’s CFO, said:
“We are very pleased that the Trustee of the Lovell Scheme has completed the recent buy-in with the specialist insurer. This transaction significantly de-risks the Group’s balance sheet, further reduces the Group’s pension exposure risks and improves the Group’s cashflow in the medium term.”
Tom Seecharan, Business Development at Rothesay, said:
“We are pleased to help the Company and Trustees protect their pension obligations. It has been a pleasure working with their experienced and well-prepared team.”
Ken Hardman, Partner at LCP, said:
“We are delighted to have helped the Lovell Scheme secure its benefits in full. This transaction shows the value in having a clear, long-term de-risking plan which is agreed between a sponsor and Trustee board working closely together. We expect such an approach to become best practice as the new pensions funding regime approaches.”
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