Pensions Insurance Corporation (PIC) has agreed a £63m buy-in deal with the NSPCC Pension Scheme to cover £63m of pensioner liabilities for the charity’s scheme. The premium was reduced in part by the trustees deferring coverage for deflation.

Steve Delo of PAN Governance, independent chair of trustees for the scheme, said: “We are delighted to have locked down volatility on a significant portion of our liabilities, securing those risks which we deem material. We worked closely with JLT, as our advisors, and PIC, to shape the contract to meet our needs, which meant we were able to save a considerable amount on the premium.”

According to PIC, it is part of a growing trend, with NSPCC’s now the third since last summer to exclude deflation risk from the terms of the buy-in.

PIC co-head of business origination David Collinson, said: “We see many schemes which would like to insure some or all of their liabilities, but are unable to afford to do so. By shaping the risks which are insured in this way, we are able to make the product more affordable, whilst removing the biggest risks, such as longevity, inflation and investment.”

The deal adds to growing evidence of a busier year for the bulk annuities market, which hit £876m in the first quarter, according to figures from consultant Barnett Waddingham last week. The total is up almost 80 per cent on the same period last year.

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