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Daily Insurance Industry News
Wednesday 23rd of May 2018
June 20, 2009

L&G secures Dairy Crest annuity policy

by Gill Montia

Story link: L&G secures Dairy Crest annuity policy

Legal & General is providing a £150 million bulk annuity policy to Dairy Crest Group Pension Fund.

The insurer will be responsible for around half the fund’s liability for pensions in payment.

Members of the scheme will not be directly affected by the new arrangement as the policy takes the form of an investment of the fund, which has liabilities of around £658 million.

Trustee chairman David Felder said: “‘This buy-in is a key step towards reducing the overall investment and actuarial volatility faced by the fund and is part of an ongoing programme of seeking routes which will reduce our overall pension risk.”

The lead adviser to Dairy Crest on the transaction was KPMG, with further advice provided by Aon, Mercer and Clifford Chance.

Pension buy-ins and transfers are becoming increasingly attractive to Trustees struggling with increased longevity and the impact of the credit crisis on investments.

Last year, Prudential set a record by acquiring £1 billion of liability from the pension scheme of Cable & Wireless, the international telecoms group.

 

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