The Pension Insurance Corporation has insured £140m of defined benefit pension fund liabilities ranging across five pension schemes sponsored by WPP.

The insurance buy-ins transaction covers pensioner and deferred member liabilities.

“This was a complicated transaction and I want to thank PIC for their dedication and assistance in helping us to achieve our aim of securing the benefits of pension scheme members,” Independent Trustee Limited, trustee chair for each of the five schemes Peter Docking said.

PIC head of business development Mitul Magudia added: “This is an innovative transaction that simultaneously secures the pension payments of five pension funds sponsored by WPP. This continues the trend of FTSE100 companies that have de-risked their pension schemes in 2017 through insurance.”

WPP is currently the world’s largest communications services group. It employers more than 200,000 people in over 3,000 offices across 112 countries.

Furthermore, it is expected that the bulk annuity market is currently and will continue to undergo increasing demand in 2018, making it “an exceptionally busy year,” Mercer partner David Ellis commented.

“This is an excellent example of a major corporate and its trustee taking proactive action to manage their pension risks. Mercer is delighted to have been lead adviser on the project,” Ellis added.

JLT Employee Benefits (the scheme actuary to the five schemes) director Mike Lane concluded: “WPP has been a longstanding client of ours for many years, and I am delighted that we have worked together to deliver this hugely successful exercise, as well as play an important part in ensuring the best outcome for members.”

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