Lucida strikes deal with Merchant Navy Officers’ Pension Fund
by Gill Montia
Lucida Plc, the insurance company focused on the annuity and longevity risk business, has agreed to insure £500 million in pension liabilities held by the trustees of the Merchant Navy Officers’ Pension Fund (MNOPF).
The MNOPF was set up in 1937 to allow shipping companies to provide retirement and death benefits for their officers and the transaction involves the Old Section of the fund which was closed in 1978 and has almost 22,000 retired members.
In other news from the pensions-buyout sector, Paternoster has announced that it will be injecting £5 million of new capital into the group to ensure it retains its capability to write new business.
The company says the new capital will also enable it to assist “in the rapid growth of the longevity-only risk transfer market”, where it is predicting greater demand in the future from companies with defined benefit pensions schemes.
However, Paternoster expects the volume of transactions to continue to be subdued until the credit markets recover and is therefore reducing its headcount from 130 to 106.
In addition, the group’s chief executive officer, Mark Wood, is stepping down to become deputy chairman and is being succeeded by Ed Jervis, previously commercial director.