All the benefits in the UK pension plan of metal flow engineering company Vesuvius are now insured with Pension Insurance Corporation (PIC) following a seventh buy-in with the specialist insurer of defined benefit schemes.

Vesuvius no longer bears any investment, longevity, interest rate or inflation risks in respect of the pension scheme, the company announced this week.

The first insurance buy-in that the Vesuvius plan arranged with PIC was in 2012. With the newest deal, covering £305m (€361m) of liabilities, over £600m of liabilities are insured with PIC.

The trustees were advised by Aon, Linklaters and Premier Pensions, the sponsor by LCP, and PIC were advised by CMS.

“We are delighted to have arranged the recent buy-in, which means all benefits for the UK Plan are now secured with PIC,” said Allan Course, chair of the trustee.

“Working closely with Vesuvius to manage a gradual de-risking of the plan over the last few years, and our approach of securing multiple buy-ins, which we developed with our advisors Aon, has enabled us to remove volatility from the UK Plan and manage the pension plan risk effectively.”

John Baines, partner in Aon’s Risk Settlement Group, said the series of transactions the trustee had done “is a great example of why a risk settlement strategy needs to be developed on a bespoke basis, with the scheme benefiting from a pro-active approach to remove as much risk as affordable through a series of buy-in transactions”.

Tristan Walker-Buckton, head of pricing at PIC, said the trustee had been “forward-thinking in managing pension scheme risk”.

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