The Tullet Prebon Pension Scheme has secured a £270m bulk annuity transaction with Rothesay Life.

Through the bulk annuity deal, Rothesay Life has insured the defined benefit liabilities of the scheme.

The trustees of the scheme have now been moved into a fully de-risked position and both the scheme and its members are now protected against longevity, investment and other risks associated with long-term liabilities from pensions in payment and deferred pensions.

The pension scheme’s trustees were chaired by BESTrustees and advised by Aon Hewitt and Sackers. TP ICAP was advised by Allen&Overy and Rothesay Life by Gowling WLG.

Rothesay Life co-head of business development Guy Freeman, said: “We are delighted to add the members of the Tullett Prebon Pension Scheme to our growing client base. Pricing for long-duration bulk annuities continues to be lower than trustee estimates in our experience. As a result we’re seeing increased appetite from corporate sponsors in full de-risking and we’ll continue to focus on adding value in structuring and executing each transaction we work
on.”

BESTrustees and chairman of the trustees of the Tullett Prebon Pension Scheme, Clive Gilchrist, commented: “The Trustees’ first priority has been to ensure the future security of members’ benefits. The Scheme’s strong funding position prompted consideration of a bulk annuity covering the Scheme’s liabilities. Following a comprehensive review of insurance providers, the trustees chose Rothesay Life on a combination of product structure, price certainty and the long-term security it brings as a low risk regulated insurer.”

TP ICAP chief financial officer Andrew Baddeley, added: “TP ICAP fully supports the Trustees' decision to insure the defined benefit pensions of its pension scheme with Rothesay Life. This transaction will provide additional security for members of the Scheme and will also help to de-risk TP ICAP’s balance sheet.”

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