The TRW Pension Scheme has transferred £2.5bn (€3.1bn) in liabilities to Legal General (L&G) in an uncommon partial-buyout arrangement that breaks the UK record for a single transaction.The scheme, sponsored by service provider to the automotive industry TRW Automotive, transferred around 78% of its liabilities in the all-pensioner buyout.The £3.5bn scheme has around 46,000 members, transferring the plans of 22,000 pensioners to the insurer and retaining £1bn of liabilities, mainly deferred members.Neil Marchuk, chair of the trustee board, said the deal was a material de-risking process providing security to the insured members. Joseph Cantle, CFO at TRW Automotive, said the partial buyout significantly improved the company’s balance sheet, transferring the liabilities to L&G.A partial buyout is where pension schemes transfer liabilities in their entirety to an insurer but do not wind down. A buy-in is the exchange of liabilities for an insurance contract against future payments held as an asset by the scheme.The scheme and its advisers had been working towards the deal for some time, running other risk-reduction exercises such as pension increase exchanges (PIEs) and enhanced transfer values (ETVs).Insurance quotes remained in the scheme’s favour given the deal’s record size and the intensely competitive bulk annuity market – particularly since the Budget reforms in March.James Mullins, partner at consultancy Hymans Robertson and adviser to the scheme, said its complex investment hedging had been beneficial in securing the timing and pricing of the deal.The PIE exercise, accepted by just under 40% of members, had made quoting simpler for L&G, as the scheme indexed using the consumer prices index (CPI), a notoriously difficult index to hedge.A PIE exercise sees the member accept an inflated initial pension payment in exchange for the waiving of annual index increases.“This deal could be the catalyst for partial-buyout,” Mullins said. “This scheme was not exceptionally funded, so a buyout looked a long-way off. But the series of steps undertaken meant they have been able to partially buy out two-thirds of the scheme.”The deal represents L&G’s second record-breaking deal of the year, after it insured £3bn of liabilities in a buy-in with the ICI Pension Fund.Managing director of L&G Retirement Kerrigan Procter said: “We have worked with the scheme over many years as they moved from index funds to liability-driven investment, and now to buyout with L&G.”The insurer has now dominated 2014, writing more than £8.3bn in bulk annuities, more than the entire 2013 market.The 2014 market is now expected to break the £11bn mark, with consultancies reporting hundreds of millions worth of transactions before year-end.Mercer’s David Ellis, lead adviser to the pension scheme on selecting L&G, said while it would be pleased with its 2014 performance, other insurers would not be feeling the pinch.“The year before, Pension Insurance Corporation (PIC) did very well, and Rothesay Life bought MetLife, which was a multi-billion deal as far as it is concerned,” he said.Mullins added: “Next year will be great as well, with L&G and Prudential and others even more keen to transact to make up for falling individual annuities sales – which is great for competitive pricing.”Bulk annuity pricing power is expected to “see-saw” between insurers and pension schemes as a variety of market and competition factors take hold, according to consultancy LCP.
Loading… Promoted ContentThe Very Last Bitcoin Will Be Mined Around 2140. Read MoreTop 7 Best Car Manufacturers Of All Time11 Strange Facts About Your Favorite TV Shows7 Of The Wealthiest Universities In The World7 Ways To Understand Your Girlfriend Better10 Of The Best Places Around The World To Go Stargazing11 Items You’ve Been Using Wrong Your Whole LifeWhat Is A Black Hole In Simple Terms?Best & Worst Celebrity Endorsed Games Ever MadeThe Best Cars Of All TimeWho Is The Most Powerful Woman On Earth?Which Country Is The Most Romantic In The World? Chelsea have been linked with a move for the Slovenian goalkeeper, who has established himself as one of the world’s elite goalkeepers in recent years. The reports have claimed that out-of-favour Blues shot-stopper Kepa Arrizabalaga could be offered as part of Chelsea’s offer for Oblak, but this latest stance from Atleti appears to indicate they will not contemplate any such offer. Read Also: Man City plotting to sign Messi without breaking FFP rulesRecent Chelsea transfer news has been centred on the Spanish goalkeeper’s future with Valencia linked with a move.Atleti are highly unlikely to sanction a sale for Oblak, who is regarded among the world’s best goalkeepers and is vital for Diego Simeone’s side.FacebookTwitterWhatsAppEmail分享 Atletico Madrid are confident that their goalkeeper Jan Oblak will stay at the club this summer but there is a “calm tension” regarding his future, report Marca. Oblak has a long-term deal in the Spanish capital through to 2023 with a whopping £120m release clause, which club president Enrique Cerezo appeared to confirm last month that the club would not negotiate upon.Advertisement
They race against each other nearly every day in club practice, but seldom square off in high school competition, unless they happen to face each other in a dual meet or invitational. For several girls’ swimmers at Conejo Simi Aquatics, that arrangement will change Tuesday at the inaugural Southern Section Masters meet at Belmont Plaza in Long Beach. Emily Bibb will be competing against Camille Duckett and Alex Sullivan in the 100-yard freestyle, Alexandra Nalevanko could be matched up with Laura DeCesare or Megan Norling-Christensen on a relay leg. After a number of outstanding performances during the four division championship meets Thursday through Saturday, CSA will have a large contingent of girls’ swimmers entered in the Masters prelims Tuesday morning, with the goal of qualifying for the top 16 and returning for the evening competition. Duckett (Thousand Oaks), Norling-Christensen (Westlake) and Sullivan (Newbury Park) had opportunities to improve upon their already impressive marks at Saturday’s Div. II championships, along with Tyler McClure of Royal of Simi Valley. Duckett and Sullivan will both compete in the girls’ 100 and 200, with McClure entered in the same events in the boys’ meet. DeCesare qualified for the Masters meet in the 200 individual medley with her second-place time (2:10.42) Thursday, but will have to wait until today to see if she made the top 24 cut in the 100 backstroke. The junior also helped La Reina defend its Div. IV titles in the 200 medley and 400 free relays, giving the Regents another opportunity to compete Tuesday. firstname.lastname@example.org (818) 713-3607160Want local news?Sign up for the Localist and stay informed Something went wrong. Please try again.subscribeCongratulations! You’re all set! AD Quality Auto 360p 720p 1080p Top articles1/5READ MOREBasketball roundup: Sierra Canyon, Birmingham set to face off in tournament quarterfinals“It’s going to be one big party,” said Nalevanko, a senior at Camarillo, who took second Saturday in the 100-yard backstroke and fifth in the 100 butterfly in Div. III to make the Masters cut – top 24 times from the championship heats in all four divisions – in all four divisions. Bibb, a junior at La Reina of Thousand Oaks, stands the best chance of drawing the biggest reaction Tuesday following a dominant performance at Thursday’s Div. IV finals. For the second year in a row, Bibb, a Simi Valley resident, was the only female swimmer in Southern California to win five titles – both individual events, two relays and the team championship – as she helped La Reina defend its championship. Bibb is among the top three qualifiers in the 100 and 200 freestyles and will also compete on La Reina’s 200 medley and 400 free relay teams. “To represent your school is very different than representing your club. There are different components,” Bibb said. “But I’m excited about the opportunity to compete and to have a lot of (CSA swimmers) there for support.”