Annuities remain cheaper than gilts, continuing the trend started in the middle of last summer according to the latest Aon Hewitt Bulk Annuities Market Monitor.
Commenting on the research, Paul McGlone of the Risk Settlement Group at Aon Hewitt said: "Aon Hewitt’s Bulk Annuity Market...
Over one million members of defined benefit (DB) pension schemes will receive their pension from insurance firms by 2017 as more companies and trustees de-risk their pension liabilities using insurance, according to the fifth annual LCP Pension Buy-ins, Buy-outs and Longevity Swaps report.
The...
A 35 year old joining a defined contribution (DC) pension fund today may have to contribute more than ten times the annual contributions of his colleague in a defined benefit (DB) pension fund to build an equivalent pension at retirement, according to figures published today (5 April) ...
More than 1 million members of defined benefit (DB) pension schemes will have their pension benefits provided by insurance companies by 2017 as increasing numbers of companies and trustees de-risk their pension liabilities using insurance, according to the fifth annual LCP Pension Buy-ins, Buy-outs...
Pensions de-risking deals undertaken by the FTSE 350 last year resulted in a share price rise of 8% on average, according to research conducted by Freshfields Bruckhaus Deringer.
The findings suggest the markets are starting to wake up to the considerable long term benefits of tackling defined...
Pensions de-risking deals undertaken by the FTSE-350 last year resulted in a share price rise of 8% on average, according to research conducted by law firm Freshfields Bruckhaus Deringer. The findings suggest the markets are starting to wake up to the considerable long-term benefits of...
The trustee of the Uniq Pension Scheme (which undertook a groundbreaking deficit-for-equity swap earlier this year) has entered into an £830m buyin contract with Rothesay Life.
The scheme trustee operated a competitive tendering process, advised by Lane Clark & Peacock (LCP). Following...
Total 2011 de-risking transactions (to the end of the third quarter) came to £3.85bn, according to JLT Pension Capital Strategies.
Pensioner buyins remain the most popular contracts. This is due to affordability, as pensioners remain "cheaper" than deferred members, and strained...
The former chairman of the Pensions Regulator, David Norgrove, is launching an insurance company to deliver de-risking solutions to UK defined benefit (DB) pension schemes. Long Acre Life, set to gain Financial Services Authorisation, in early January is targeting schemes with liabilities in excess...
2011 will be a record year, with de-risking deals potentially topping £9bn of UK pension scheme liabilities, forecasts Hymans Robertson.
The third quarter of 2011 saw over £2bn of risk transfer deals completed, comprising buyins, buyouts and longevity swaps, including the £1....
2011 will be a record year with de-risking deals potentially topping £9bn of UK pension scheme liabilities, forecasts Hymans Robertson.
The third quarter of 2011 saw over £2bn of risk transfer deals completed, comprising buy-ins, buy-outs and longevity swaps. Indeed, the £1....
Bulk insured pension companies reported an increase in funds under management, totalling £30 billion to the end of 2010, according to new figures released by the ABI today. The pensions of over 600,000 people are now covered by these funds.
Responding to increased interest the ABI and...
The trustee board of the Meat and Livestock Commission Pension Scheme, advised by Towers Watson, has completed a £150m pensioner buy-in with Aviva. The deal, transacted in June 2011, involves Aviva making payments to the scheme equivalent to pensions for over 900 pensioner and dependant...
The costs for UK pension schemes transferring liabilities into the buyout market have reached a record high, according to Aon Hewitt.
The collective final salary pension accounting deficit of the UK’s FTSE 350 companies stands at around £40bn and has been at this level for much of...
The long and winding road – developments in the buyout market by John Branford, Bluefin
Most in the industry agree that the ultimate fate of almost all private sector defined benefit (DB) schemes will be buyout and increasing closure to accrual sees it moving up the agenda.
Unlimited capacity
The buyout industry expanded significantly from two or three traditional insurers to a...
The trustee of the Nova Chemicals UK Pension Plan has entered into a pension insurance buyout agreement with Pension Insurance Corporation. The insurance buyout agreement covers liabilities of £30m and the plan’s 155 members, mainly based in Manchester.
The pension buyout...
Nearly £30bn of buyout business has been written since 2006, including £7bn by pension plans sponsored by FTSE 100 companies. This is one of the key findings of the LCP Pensions Buyout 2011 report.
Business volumes in 2010 were the highest on record. Volumes totalled £8.3bn in...
De-risking is firmly established on the agenda for pension scheme trustees with 89% regarding it as important to overall business objectives according to a MetLife Assurance survey of 122 trustees.
Their recognition of the importance of de-risking has been driven by the economic events of the...
The trustees of the Radius Systems Pension Scheme, advised by Mercer, have transferred the scheme’s pension obligations to Rothesay Life. The deal is valued at under £100m. Radius Systems is the leading manufacturer of pipes and fittings in the UK, supplying the domestic and...
The covenant comparison is key to pension plan buyouts, says Akash Rooprai, Mercer
A key consideration when buying out defined benefit pension liabilities is the strength of the chosen insurer’s financial covenant, compared to the existing overall covenant supporting the pension plan. It is not always a straightforward comparison but a robust investigation can help you...
