EMI Group has completed a £1.5 billion pension insurance buyout for its defined benefit (DB) pension scheme.
The buyout, which was completed by Pension Insurance Corporation (PIC), covers 20,000 members.
Citigroup has been the sponsoring employer of the EMI Group Pension Fund since 2012. It was advised by consultancy Mercer on structuring the insurance contract and supporting the competitive tendering process.
Law firm Sackers has acted as trustee of the pension fund.
David Ellis, UK bulk pensions insurance leader at Mercer and lead adviser to Citigroup on the transaction, said: “This is a landmark transaction, demonstrating that bulk pensions insurance transactions remain viable despite what some commentators describe as adverse conditions.”
Michaela Berry, partner at Sackers, added: “We worked closely with all parties to help the trustee achieve its principal objective of securing the members’ benefits in full.
“It has been a great opportunity to have been able to assist the trustee with such a market-leading transaction, the largest-ever pension insurance buyout.”