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Land Securities Group scheme completes £110m buy-in

09 February 2017

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The pension and assurance scheme of FTSE 100-listed company, Land Securities, has completed a £110million buy-in with insurer, Just.

The deal, which was agreed in December, covers around three quarters of pensioner liabilities in the scheme – and was completed in just over two weeks.

Just said it is one of the most significant deals it completed since merging with Partnership Assurance in April 2016.

Director of defined benefit solutions at Just, Tim Coulson, said: "Trustees were able to move from a decision to go ahead to signing the contract in one of the shortest period that we have been – an excellent example of how those pensions scheme that are well prepared, can achieve excellent outcomes in the bulk annuity market."

A medical underwriting exercise is due to take place, which Just said would provide potential to deliver improved terms to the trustees.

Peter Frackiewicz, Land Securities chair of trustees said: "We are very pleased to have taken this important step in managing risk within our scheme, gaining protection against demographic risks and a source of income that will help us meet our benefit payments with a reduced need for divesting assets."

Hymans Robertson was the lead adviser to the Trustees, with Sackers providing legal advice.

Frackiewicz said: "Hymans Robertson's advice helped us complete our transaction smoothly and efficiently, securing excellent value for us by closing the deal within a very short timeframe.

"We are also grateful to Just, who worked closely with us and our advisers and showed flexibility to develop solutions to accommodate."

James Mullins, partner and head of risk transfer solutions at Hymans Robertson said: "We are delighted to have helped the Trustees successfully complete their first buy-in.

"Buy-in pricing compared to other low risk assets such as gilts is at the most attractive level in several years offering some great opportunities for pension schemes and we expect these favourable conditions to persist over 2017.

"We expect to see many more pension schemes transferring risk using buy-ins over the coming year."

First published 09.02.2017

Lindsay.sharman@wilmingtonplc.com