The trustee of the G4S Pension Scheme has completed a £1.8bn bulk purchase annuity buy-in transaction with Just Group. The deal covers the benefits of around 22,500 scheme members.
“Our focus has always been on ensuring that the promises made to our members are kept, and this buy-in allows us to safeguard those commitments with confidence. With thanks to Aon, who skilfully led the process, navigating through the market to reach our goal,” said Allan Course of Capital Cranfield, the Chair of the Trustee.
“The buy-in with Just not only enhances the security for members, but also ensures they receive the care and service they deserve. It has been a tremendous effort from all advisers involved, with special thanks to the Aon, Cardano, Gowling and Capita teams in supporting the trustee through the process,” Course added.
“We are delighted to have been selected by the trustee to secure the scheme members’ benefits, and we look forward to providing a brilliant member experience for years to come. The transaction was the culmination of a rigorous selection process run by Aon and LCP, and demonstrates our ability to support larger schemes in their de-risking journeys. There is a vibrant insurance de-risking market for schemes of all sizes and Just are delivering outstanding service to small schemes, large schemes and everything in between,” added Pretty Sagoo, Managing Director, Defined Benefit Solutions at Just Group.
The scheme’s funding level had improved in recent years, enabling the trustee and company to accelerate their plans to de-risk the scheme.
The trustee was advised throughout the process by Aon.
“We have worked closely with the trustee in recent years, now culminating in leading this transaction which saw a highly competitive auction process. This led to an excellent outcome for scheme members owing to the Trustee’s readiness to transact and nimble governance processes. The trustee, supported by Aon, took great care to prioritise the members’ experience at every step of the process and carefully selected Just following a bespoke due diligence process,” said Charlotte Quarmby, Partner, at Aon.
LCP provided advice to the company. Legal advice was provided by Gowling WLG to the trustee, by Freshfields to the company and by CMS to Just Group. Cardano acted as covenant adviser and fiduciary manager. The deal is the largest publicly announced UK pension risk transfer deal in 2024 to date.
