The UK shipping group P&O has agreed a £440m buy-in with Rothesay, in a deal which will secure benefits for its 5,300 pension scheme members.

The scheme previously completed a buy-in to cover its existing pensioners in 2007, which was one of the first transactions of its type.

The initial pensioner buy-in was written by Paternoster, which Rothesay acquired through a Part VII transfer in 2011, while the second buy-in, covering the remainder of the scheme’s members, means that all of the scheme’s members are now secured by Rothesay.

Steve Delo, chair of trustees, said that the deal caps “many hard years of work” by the trustee board and “brings to fruition the vision that our senior pensions manager Jane Healy has pursued with focus and determination since she joined P&O over a decade ago”.

Róisín O’Shea, business development at Rothesay, said: “It is always pleasing when an existing client chooses to work with us again to protect its members’ pensions and we are delighted to secure the benefits of the remaining members of the scheme through this second buy-in.

“Rothesay’s capital strength, dedicated pricing team and proven ability to execute means we are incredibly well-placed to convert the exciting new business opportunities we are continuing to see in a very buoyant bulk annuity market.”

Barnett Waddingham acted as actuarial and risk transfer adviser, while legal advice was provided to the trustee by Eversheds-Sutherland. Administration and investment services were provided by Mercer.

Rothesay was advised by CMS.

Rosie Fantom, head of bulk annuities and risk partner at Barnett Waddingham, said: “Reaching this significant milestone for the members is testimony to the hard work of the trustee, company and all the parties who have worked together on the transaction.”

Fantom added that this latest buy-in was completed within nine months of Barnett Waddingham’s appointment as risk transfer adviser.

She continued: “We guided the trustee through focused preparations and driving a competitive process in an exceptionally busy risk transfer market.

“As one of BW’s longstanding scheme actuary clients, we were able to identify a market opportunity and help the trustee to respond quickly. We are very pleased to have led the trustee through this important process for the scheme and its members.”

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