14 November 2019
“London, 13 November 2019 – Pension Insurance Corporation plc (“PIC”), a specialist insurer of defined benefit pension funds, has completed a third pension risk transfer transaction for a pension scheme sponsored by Scottish & Southern Energy (“SSE”), converting a pensioner longevity swap held by the Scottish Hydro Electric Pension Scheme (“SHEPS”) into a £750 million buy-in. In 2016, PIC insured £250 million of SHEPS’s pensioner liabilities and £100 million of pensioner liabilities in the Scotia Gas Networks Pension Scheme, through two separate buy-ins.
A key feature of this transaction is that PIC is restructuring and stepping into the existing longevity swap and it underpins the buy-in from inception. This longevity swap conversion to buy-in confirms the trend within the market for trustees to seek guarantees for all of their risks. A number of recent longevity swaps have been converted to buy-ins and more are expected.
SSE, a constituent of the FTSE 100, is a UK energy company with operations and investments across the UK and Ireland. It is primarily a developer (which includes being a builder), an operator and an owner of low-carbon energy assets and businesses, with a strategic focus on regulated electricity networks and renewable energy.
The SHEPS Trustees were advised by Hymans Robertson and Shepherd and Wedderburn.”
December 8, 2023
December 7, 2023
December 7, 2023
The Exelerating platform helps you to gain relevant insights into € 6,000+ billion of European institutional assets. We do this by tracking and analysing thousands of public sources of data.Learn more