CF Fertilisers’ pension schemes complete combined £265m buy-in with M&G

Written by Callum Conway

01/12/2025

Two CF Fertilisers UK pension schemes have completed a combined £265m buy-in with M&G, securing the benefits of more than 1,350 retirees and deferred members.

The deal covers both the Kemira Growhow UK Limited Pension Fund and the Terra Nitrogen UK Limited Pension Scheme, delivering a full buy-in for both schemes.

The transaction was written through M&G’s wholly owned subsidiary, The Prudential Assurance Company Limited (PAC).

XPS Group acted as lead adviser to the trustee, who also received advice from Burges Salmon (legal), PwC (covenant) and Mercer (investment), while EY and Eversheds Sutherland advised the sponsor. CMS provided legal advice to M&G.

Trustee chair, Susan Anyan, highlighted the collaborative effort behind the deal, noting that a “strong partnership” with the company had allowed the schemes to accelerate their shared ambition to future-proof members’ benefits.

She said a multidisciplinary team enabled the trustee to “navigate a complex process” and achieve a positive outcome for members.

Echoing this, M&G head of bulk annuity origination and execution, Rosie Fantom, explained that the firm worked closely with the trustee, the sponsor and advisers to shape a solution that accommodated the individual requirements of both schemes, including target pricing and a wide range of terms.

She claimed that the partnership was key to tailoring a proposition “to deliver an optimal member experience”, adding that the outcome demonstrated the insurer’s ability to address scheme complexities and harness its integrated business model.

Meanwhile, XPS Group pensions risk settlement advisor, Jo Carter, said the complexity of the schemes’ benefits required a combined approach drawing on risk settlement, actuarial and administration specialists, supported by robust project management.

She added that this helped the trustee leverage insurer competition and secure a strong result for all parties.

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