Sackers advises on £6.5bn buy-in for RSA’s UK pension schemes

The trustees of two schemes sponsored by RSA Group, the Sal Pension Scheme (SALPS) and the Royal Insurance Group Pension Scheme (RIGPS) have concluded a buy-in with Pension Insurance Corporation (PIC), insuring in total c£6.5bn of liabilities and covering the pensions of 40,000 members. RSA Group is a wholly owned subsidiary of Intact Financial Corporation. Sackers advised the trustee of SALPS throughout the transaction.

This is the largest ever bulk annuity transaction from pension schemes to insurer. It addressed significant issues of timing and complexity and will pave the way for other very large transactions. Pricing was agreed amidst unprecedented market volatility during the LDI crisis and the transaction was facilitated by upfront contributions from Intact of approximately £500m. Sackers worked closely with the trustees, sponsor and the Scheme’s other advisers, advising on a number of complex issues including accommodating SALPS’ existing longevity and asset swaps.

Ray Cox, Chairman of SALPS, said: “This is a landmark transaction which secures the benefits of all our members. It would not have been possible without the excellent support from all the team at Sackers who showed resilience, commerciality and determination to get the deal signed.”

David Saunders, senior partner at Sackers, said: “We were delighted to have been able to combine our in-depth knowledge of the Scheme with our wider risk transfer and investment expertise to help bring this transaction to a successful conclusion, particularly given the commercial sensitivities, the complexities of so many moving parts and the tight timeframe.”

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