The Jardine Lloyd Thompson (JLT) UK Group Pension Scheme has completed a further £85m buy-in contract with Prudential.

The deal covers part of the pensioner liabilities in the defined benefit (DB) section of the scheme, which has approximately 4,000 members, assets of around £500m and was closed to future accrual in 2006.

This recent contract follows an earlier buy-in transaction with Prudential in October 2013 for £120m of pensioner liabilities.

The structure of the deal was based on trigger prices, which were set for tranches of the scheme's liabilities, and Prudential acquired assets to meet these triggers and complete the transaction.

Martyn Phillips, JLT Employee Benefits head of buyouts, said: "The trigger price mechanism has enabled us to achieve demanding price targets for the JLT UK Group Pension Scheme for this £85m pensioner buy-in contract, and for the £120m pensioner buy-in concluded for the scheme in October 2013.

"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."

Aki Hussain, Prudential UK & Europe chief financial officer, said that segmenting liabilities is appearing to be an attractive de-risking approach for schemes.

He said: "We anticipated that the introduction of this fresh, segmented approach to de-risking would prove attractive and create new opportunities for schemes to transact, and we have not been disappointed with the response from trustees. We fully expect the momentum created to carry on through 2014."

First published 14.01.2014

monique_simpson@wilmington.co.uk