PIC completes £200m buy-in with Kingfisher

Written by Theo Andrew
25/04/18

The Pension Insurance Corporation (PIC) has completed a £200m buy-in with the Kingfisher Pension Scheme.

The deal results in approximately £450m of insurance for the home improvement company, which has roughly £4bn of liabilities in total.

According to PIC head of business development, Mitul Magudia, insuring pension schemes in phases has become a “trend” within bulk annuities over the past few years as pension schemes move into fixed-income assets to better match their liabilities.

In 2016 Kingfisher agreed a £230m transfer with Legal and General, as part of its plans to become pensions self-sufficient by 2030.

Kingfisher chairman of trustees, Clive Gilchrist, said: “This is another important step for the Kingfisher Pension Scheme on its journey towards its target of self-sufficiency. The annuity provides a further improvement to the financial security of the scheme for all members.”

Last month, PIC announced they secured £3.7bn of new pension insurance business premiums in 2017, up from £2.6bn in 2016.

Aon advised the trustees on the Kingfisher deal.

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