The Cobham Pension Plan's trustees have agreed to a £280m bulk annuity transaction with Rothesay Life.

UK gilts and cash were exchanged for a bulk annuity insurance policy that provides a close match to the retired members' benefits.

The policy is being held as an investment by the scheme's trustees.

Simon Nicholls, Cobham chief financial officer, said: "This transaction, which was prefaced in the Group's 2012 financial statements and follows two smaller buy-in transactions on separate defined pension plans completed in 2011, represents a significant step towards de-risking the Group's defined benefit pension plans using the plan's assets and adds further levels of security to the plan's obligations towards its members."

Addy Loudiadis, Rothesay Life CEO, said: "This is Rothesay Life's tenth transaction worth over £250m and we are continuing to benefit from strong pension fund demand."

She added: "We provided Cobham and the trustees with price certainty from when we were selected and then agreed contracts quickly."

First published 15.08.2013

monique_simpson@wilmington.co.uk