Barloworld UK scheme completes £484m buy-in deal with Just Group

The Barloworld UK Pension Scheme has completed a £484m (€559m) full scheme buy-in with Just Group, insuring the benefits of around 3,000 pensioners and 1,800 deferred members.

The transaction provides improved benefit security to members and delivers a key step in the scheme’s plan to have buy-in investments which cover all the benefits within the pension fund, it was announced.

Just Group completed the deal with the involvement of a new reinsurance partner, taking the opportunity to reinsure approximately 50% of the liabilities in the scheme and it underlines the group’s commitment to grow its new business with low capital strain, the firm stated.

It is Just Group’s largest defined benefit (DB) transaction to date in terms of value and membership numbers, as the firm celebrates its 10th anniversary of participation in the bulk annuity market.

It has completed more than 250 transactions during this period, written over £11bn of premiums and now secures the benefits of more than 53,000 members, Just Group said.

The lead transaction adviser was LCP, with Isio acting as scheme actuary and investment advisers to the trustee. The trustee legal advisers were Pension Partners and MacFarlanes. Just Group’s legal advisers were CMS. The trustee was chaired by Independent Trustee Services.

Quinton McGeer, chief executive officer at Barloworld UK, said: “Our target has been to remove UK pension scheme risk by fully insuring all members and this transaction comes at the right time with favourable terms. We were prepared to make a significant financial contribution to enable this deal to happen, subject to obtaining attractive pricing and terms, in order to secure a full buy-in that meets both our corporate objectives but also protects the benefits of the scheme members.”

Pretty Sagoo, managing director, DB solutions at Just Group, said: “We have established a strong franchise and reputation in the small and medium segments of the market. We have the capabilities, resources and confidence to repeat this success by writing bigger deals in the higher value segment of the market.”

Mark Evans, chair of trustees at Independent Trustee Services, added: “Our priority was to secure the optimum protection of benefits for all our members, now and in the long term, and we believe Just Group is extremely well-placed to deliver this. We are already working with the transition team at Just, our administrators and advisers to ensure a successful transition that will deliver security and excellent service for our members in the future.”