The UK arm of consultant JLT has agreed a £85m (€102m) buy-in insurance contract with Prudential covering pensioners in its JLT UK Group Pension Scheme.

The deal insured a portion of the pensioners in the 4,000-member defined benefit (DB) scheme and added to a similar £120m contract agreed with Prudential in October 2013.

Both deals saw the use of a trigger pricing mechanism, allowing JLT to purchase the insurance contracts for its members in tranches, as soon as the most competitive price is available.

Under the system, each tranche of members is given an appropriate trigger price, which, when met by market movements and insurers, allows for a quick and easy deal.

This latest transaction now creates a total of £205m of insured liabilities for the £500m scheme, as it moves to reduce volatility.

The scheme closed to future accrual in 2006.

The trigger mechanism enabled JLT to achieve competitive price targets in both the contracts agreed with Prudential, said Martyn Phillips, head out buyouts in JLT’s employee benefits arm.

“These transactions demonstrate the benefits of proactively engaging in a well-designed de-risking process, and, with an insurer of Prudential’s expertise, to significantly reduce risk in the scheme,” he said.

The group’s finance director, Mike Reynolds, said the deals were a result of close work between the trustees, Prudential and the group’s employee benefit practice.

“The buy-in transactions are part of JLT’s long-term plan to proactively manage its balance sheet,” he said.

Aki Hussain, CFO at Prudential UK & Europe, added: “We anticipated the introduction of this fresh, segmented approach to de-risking would prove attractive and create new opportunities for schemes to transact. We have not been disappointed with the response from trustees.”