UK engineering scheme completes £74m buy-in with Just Group

Just Group has completed a £74m buy-in with an unnamed UK pension scheme of an American-listed engineering business.

The £170m scheme was advised by Cartwright, Shoosmiths and Lincoln Pensions while Just Group was advised by Pinsent Masons, with transaction leader Cartwright partnering with K3 Advisory to increase its access to the bulk annuity market.

K3 managing director, Adam Davis, stated that the bulk annuity market had continued to grow for small and medium schemes “despite the challenges of coronavirus and lockdown”, also noting that the transaction was the largest K3 had worked on since the start of the pandemic.

He added: “Because of Cartwright’s preparation of the scheme and being able to transact in this period, the scheme took advantage of favourable market conditions and traded well ahead of standard market pricing.

"Just Group provided the best solution which had a positive impact on the funding position of the £170m scheme, whilst materially reducing the risks they face.”

Cartwright director of investment consulting, Sam Roberts, said the company had worked hard to ensure that the scheme was ‘transaction ready’ by “reviewing, clarifying and updating the scheme benefits, data and investments”, which meant they were “quickly able to take advantage of the beneficial pricing opportunities arising from the effects of coronavirus on the markets”.

The chair of the trustees added: “The trustee board was provided with clear support, direction and guidance from the start and throughout this transaction.

"The drive and determination of the organisations involved was clearly evident as they helped us achieve our ambitions of de-risking the scheme with a beneficial effect on the scheme’s funding position.”

Just Group business development manager, Peter Jennings, said: “Having worked with K3 on several successful deals this year, we know that the schemes they bring to market are transaction ready and come with a well-developed execution plan.

"These two factors are attractive to insurer’s and we are delighted to have assisted the trustees and provide more certainty for their members.”

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