Rothesay secures £1.4bn transaction for Rexam Pension Plan

29 January 2024

The pension scheme buy-in insures £1.4bn of liabilities for the Rexam Pension Plan

• The transaction secures the benefits for over 14,000 members – 9,790 pensioners and
dependants as well as 4,330 deferred members
• The buy-in is a single premium insurance policy covering residual risks for the Scheme

Rothesay, a leading UK pensions insurance specialist, today announces that it has completed a £1.4bn full scheme buy-in with the Rexam Pension Plan (the “Scheme” or “Plan”). The Scheme is sponsored by Ball Corporation (the “Sponsor”), a supplier of innovative, sustainable aluminium packaging solutions for beverage, personal care and household products. The transaction secures the benefits for over 14,000 members of the Scheme which includes defined benefit liabilities for 9,790 pensioners and dependants and a further 4,330 deferred members.

The buy-in is a single premium insurance policy covering residual risks and no contribution was required from the Sponsor. Having agreed to structure the insurance premium as a specified pool of assets owned by the Scheme, the economics of the transaction were fixed in August 2023. The Trustee, Sponsor, Aon and Rothesay have worked together collaboratively since then to underwrite the residual risks of the Scheme.

The lead broker on the transaction was Aon. WTW provided actuarial advice and project management to the Trustee. LCP are the Plan’s investment advisers. Rothesay and the Scheme received legal advice from Eversheds Sutherland and Sackers, respectively. A&O provided the Company with legal advice.

The buy-in was one of 12 pension schemes Rothesay was able to assist in their de-risking journey in 2023, resulting in total new business premiums for the year of £12.7bn.

Cleo Taylor Smith, Business Development at Rothesay, said: “From our first meeting with the Scheme and Sponsor it was clear that there was a strong cultural fit between our organisations and we are delighted to have worked so collaboratively together to secure the future for over 14,000 members. It has been a pleasure to work with the Trustee to reach such a successful outcome. Last year was one of Rothesay’s busiest ever, with £12.7bn marking the second largest volume of annual new business we’ve ever completed. 2024 is looking equally, if not more, exciting with a currently unprecedented pipeline. Rothesay’s strong capital position and proven capability to execute large and complex transactions, like for the Rexam Pension Plan, mean that we are very well-placed to meet this opportunity.”

Chris Martin, IGG and Chair of Trustees, said: “This is a significant milestone in our de-risking journey and we are delighted to have been able to achieve this outcome for members by working in collaboration with Rothesay. I would particularly like to thank my colleagues on the Trustee Board and within Ball Corporation, including the fantastic in-house Pensions Department, as well as the Plan’s excellent advisory teams for their collaborative and diligent approach which enabled the delivery of such a great result.”

John Baines, partner in the Risk Settlement Group at Aon, said: “For such a complicated scheme, we adapted the broking process to develop creative solutions, allowing the Trustee and Company to meet all of their objectives. As the market continues to get busier, increasingly thorough preparation and setting out requirements which are carefully tailored to schemes’ objectives will be the blueprint for achieving the best outcomes for members.”

Claire van Rees, partner at Sackers, said: “It was an absolute privilege to work with this team. It’s a complex scheme, but with clear leadership, good preparation, hard work and creativity we collectively secured a great outcome for the Scheme members.”