The trustee of the TotalEnergies UK Pension Plan has concluded a second buy-in with PIC, a specialist insurer of defined benefit pension schemes, for £1.2bn.
The transaction is the largest completed buy-in announced to date this year. It follows the plan’s first buy-in with PIC for £1.6bn in 2014; PIC has now insured all £2.8bn of the plan’s defined benefit liabilities. The latest buy-in secures the pensions of over 2,000 pensioners and dependants and 3,500 deferred policyholders.
“Securing the benefits for our members has been the aim of the trustee for many years. We are pleased to have reached this milestone by extending our existing relationship with PIC. I would like to thank TotalEnergies, PIC, and our advisers for their collaborative and flexible approach in what was a complex and challenging transaction,” said Rob White, Chair of the TotalEnergies UK Pension Plan.
“It has been a pleasure working with the plan and its advisers on securing this complex deal. Repeat transactions such as this rely on the excellent relationships fostered, in this case over a decade ago, with the aid of LCP. I would expect to see more schemes in the market complete repeat transactions, such as this, when pricing objectives have been met,” added Tristan Walker-Buckton, Co-Head of Origination at PIC.
LCP acted as lead transaction adviser for the trustee and company.
“We are delighted to have helped the joint working group secure another buy-in. Much has changed in the last ten years since the plan’s first buy-in was concluded. Whilst large transactions are more common now, they usually have their own intricacies – this one had unique structuring requirements and a complex benefit structure reflecting the legacy of the Company’s business. But as ever, a combination of good preparation and close collaboration between all parties, meant we were able to overcome these challenges and negotiate this sizeable transaction with PIC, achieving a really attractive outcome for the plan,” said Yadu Dashora, Partner at LCP.
The trustees received legal advice from Sackers and the TotalEnergies received legal advice from CMS. PIC was advised by Addleshaw Goddard.
