Total UK Pension Plan has secured a £1.6bn buy-in with Pension Insurance Corporation (PIC) in the second largest bulk annuity deal in the UK to date.

Total is a large publicly-traded international oil company, and its UK scheme has total liabilities of £2.6bn.

LCP advised the trustees and the company and Mayer Brown represented the trustees.

Total UK Pension Plan chairman of trustees Iain McCombie, said: "This was a complex transaction in which we sought to bring certainty to a large portion of our liabilities."

He added: "We are delighted to have been able to conclude this transaction on favourable terms and within a tight timetable."

PIC co-head of business origination David Collinson said that the deal was a "landmark" transaction and was "significant" for the bulk annuity sector, and has helped to push pension liabilities insured so far this year past £5bn.

LCP partner Emma Watkins said: "This is the second largest buy-in completed in the UK to date. The size of the transaction has required the implementation of an innovative structure that has been successfully achieved with the cooperation of PIC.

"We expect to see an increasing trend of £1bn plus transactions of this nature."

First published 10.06.2014

monique_simpson@wilmington.co.uk