Baker Hughes Pension Plan completes £100m Just Group buy-in

Baker Hughes (UK) Pensions Plan has completed a £100m buy-in with Just Group in its latest move to reduce risk.

Baker Hughes is a tech company which specialises in creating solutions for energy and industrial customers around the world and has operations in more than 120 countries.

The trustees of the company’s £1.4bn scheme were advised by Willis Towers Watson and CMS during the process of the transaction.

Baker Hughes (UK) Pension Plan chair of trustees, Venetia Trayhurn, commented: “We are delighted to have completed this transaction with Just. This follows a measured approach to the market with the time invested building the ‘take to market’ proposition reaping rewards.

“We are grateful to our advisers for navigating us through the process to achieve a successful outcome, with provider selection and execution running seamlessly, all whilst in the early stages of lockdown and the logistical challenges this brought. We are pleased to work with Just, who demonstrated competitive pricing supported by strong credentials and service.”

Just Group business development manager, Martin Parker, said the success of completing a transaction during the pandemic reflected “the professional approach adopted by all the stakeholders”, adding that he was “pleased the trustees selected us for this buy-in and to have delivered a positive outcome for the plan members”.

Willis Towers Watson Pensions Transaction Team director, Thomas Ashworth, added: “We are delighted to have advised the trustees of the Baker Hughes (UK) Pension Plan on this transaction. This deal highlighted the benefits of schemes being transaction ready and ‘in the market’ as the trustees were able to move swiftly to secure an advantageous pricing opportunity.

"Mid-March to June was an incredibly attractive time to undertake a buy-in due to a widening of credit spreads, and we helped 14 clients transact buy-ins during this period. Whilst credit spreads have now narrowed, pricing is still proving attractive and we’re anticipating a flurry of deals closing between now and the year-end.

"This should mean that there will be around £25bn of bulk annuities traded in 2020, one of the busiest years ever despite incredibly challenging circumstances, which is testament to the robustness of the market and the continued focus of trustees on managing risk."

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