WTW was lead transaction adviser to the Trustee on the transaction, covering all 17,000 scheme members.
LONDON, February 27, 2023 – The Trustee of the Royal Insurance Group Pension Scheme (“RIGPS”/”Scheme”) has agreed a £2.7 billion buy-in with Pension Insurance Corporation plc (“PIC”) covering all 17,000 members of the Scheme. WTW led the advice to the Trustee throughout the ground-breaking transaction process. The transaction ensures that members benefit from comprehensive risk coverage.
Ian Aley, Head of Pension Scheme Transactions at WTW, said: “It was a pleasure working with the Trustee and the in-house pension team, a long-standing client of WTW, to complete this innovative transaction and, most importantly, enhance long-term security for members.
“This transaction shows the opportunities available in the market for large pension schemes to manage risk, and the benefits of a collaborative approach and problem-solving mentality.
“Having initially approaching the market on behalf of the Trustee to obtain quotes for insuring longevity risk only, the extremely competitive pricing presented by the reinsurance market meant an opportunity was identified for the Trustee to fully de-risk the Scheme ahead of expected timescales. The transaction was quickly adapted to take advantage of the improved market conditions, demonstrating the importance of being nimble to optimise the outcome for members.
“Working closely together, all parties overcame several structural challenges to complete the transaction.”
David Smith, Chair of Trustee of the RIGPS, said: “The transaction involved a high degree of complexity and multiple organisations. The WTW team was superb in guiding the Trustee through this, demonstrating both a detailed technical knowledge and strong commerciality. The Trustee considers the outcome to be a significant step forward in securing members’ benefits.”
Andrew Long, Managing Director at WTW and Scheme Actuary to the RIGPS, said: “We have advised the Trustee for many years and now seeing members’ benefits being fully secured is testament to its hard work and is very satisfying for all involved. We have built a strong relationship with the Trustee over the years which enabled us to work closely together and lead the Trustee through this complex transaction.”
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