The biggest ever pensions buy-in deal has been agreed upon between Rothesay Life and the RSA Insurance Group plc in a £1.9bn transaction.

Rothesay Life will insure the pension liabilities of RSA's UK pension schemes, reflecting over 55 per cent of the total current pensioner benefits. The transaction was designed and completed by Rothesay Life and Goldman Sachs International.

The trustees at RSA will retain ownership of the assets, which comprise of gilts and UK government guaranteed bonds, while Rothesay Life's insurance provides a high degree of security for the schemes.

"This is a fantastic vote of confidence in Rothesay Life as a secure home for companies' pension liabilities," commented Addy Loudiadis, chief executive of Rothesay Life. "RSA and their trustees had very specific requirements, and we are delighted to have been able to design and complete execution of an innovative, secure structure to meet their needs.

"Our financial strength and capital backing, together with our expertise in designing bespoke solutions for pension schemes, put us in an excellent position as the pension buy-out market continues to develop over the next few years," she added.

- Pensions Age July 2009

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