ICI Pension Fund
15 April 2014
In its role as the trustee of the ICI Pension Fund, LawDeb Pension Trustees was involved in a £3.6billion buy-in that included the largest ever bulk annuity purchase in the UK pensions market – a £3billion buy-in with Legal & General.
The ICI Pension Fund, advised by LCP, insured some of its liabilities through collateralised buy-ins with Legal & General and Prudential – in transactions that show how buy-ins can be successfully structured on a scale not thought practical until now.
Michael Chatterton, the director who represents LawDeb Pension Trustees for the ICI Pension Fund, confirmed that a clear strategy and focussed process ensured the engagement of the insurer and optimised the risk removed from the Fund. He also emphasised the importance of the design of the leading-edge collateral structure that provided additional protection against insurer risk default.
Following the completion of the transactions Michael commented that:
It is encouraging to see the extent of the insurers’ appetite in this area and to know that our extensive experience helped ensure an optimal outcome for our client.