Insurance brokers Aon Minet has entered into a pension insurance buy-in agreement with the Pension Insurance Corporation (PIC).
The £100-million transaction covers around 25% of its pensioners’ liabilities.
Robert Dickinson, chairman of the trustees at Aon Minet, said: “This buy-in agreement with PIC is very important to us as we move to further de-risk the scheme through securing the liabilities, following a previous pensioner buy-in in 2009.
Paul Belok, principal at Aon Hewitt, said: “We worked closely with the trustees to help them progress their de-risking strategy.
“To achieve this, we ran a competitive process to assess the bulk annuity market for the best terms and structure and the resulting solution will further enhance members’ security.”
Jay Shah, co-head of business origination at PIC, added: “With this transaction, the trustees have insured benefits for a tranche of pensioners with PIC, which means that these liabilities are fully hedged.
“We are seeing more trustees exchanging scheme assets, such as gilts and cash for a matching investment in the form of an insurance buy-in policy as pricing terms remain relatively attractive for schemes holding well-matched assets”
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