Rothesay Life secures £520m Cadbury pension buy-in

Rothesay Life has agreed a buy-in with the Cadbury Mondelēz Pension Fund, insuring £520m of defined benefit liabilities.

This is the second tranche of de-risking for the Cadbury scheme and takes the schemes insurance to around 20 per cent of its £4.6bn liabilities, following a £500m buy-in completed in 2009.

It covers payments for around 1,900 scheme members and the bulk annuity will be held as an asset of the scheme.

Cadbury Mondelēz Pension Fund chairman of the trustees, Greg Chick, described the deal as a “significant step to de-risk the scheme” and said they will continue to de-risk in the future.

The scheme trustees were advised in the deal by Aon and Pinsent Masons, while Rothesay Life were advised by Gowling WLG.

Aon partner, John Baines, added: “This transaction is a great example of how patience can pay dividends when setting a long-term strategy.

“After supporting the trustee with their first £500m buy-in 10 years ago, we are now helping to provide even greater security to Cadbury Mondelēz Pension Fund members.”

Premium was paid in gilts and cash and will be reinvested using Rothesay Life’s long-term investment strategy.

Commenting on the deal, Rothesay Life business development, Sammy Cooper-Smith, said: “We are delighted that the trustees of the Cadbury Mondelēz Pension Fund have chosen Rothesay Life to secure its pensioners’ payments.

“As part of its long-term de-risking strategy we have been working closely with the scheme’s in-house team which has led to a particularly smooth process. We look forward to continue working with them to deliver these members’ benefits.”

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