News Column

Pension Insurance Corporation inks bulk annuity deal for Total

June 10, 2014

MICHAEL BOW



PENSION Insurance Corporation (PIC) yesterday agreed to insure 1.6bn of pension obligations for the UK arm of oil company Total - the second largest deal of its type ever completed in the UK.


The deal, which covers two-thirds of Total's 2.6bn pensioner liabilities, is the second largest bulk annuity deal to date after ICI Pension Fund's 3.6bn transaction with Legal & General and Prudential in March.


Total, the fifth largest listed oil company in the world, has about 7,000 defined benefit pensioners in the UK scheme.


Pension Insurance Corporation co-head of business origination David Collinson said: "This is a landmark transaction for PIC and is significant for the bulk annuity sector, pushing pension liabilities insured already this year past 5bn."


A batch of jumbo-sized buy-in, buy-out and longevity swap deals this year have put 2014 on track to be a record year for the pension scheme insurance market.


Figures from Towers Watson show the market on track to breach 10bn of total deals this year, with longevity swaps and bulk annuity deals split half and half.


Last year saw just over 16bn of deal signed by pension insurers and pension trustees.


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Source: City A.M. (UK)


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