PIC agrees sixth partial buy-in with IMI deferred fund

Written by Adam Cadle

03/02/2023

The trustee of the IMI 2014 Deferred Fund has agreed a £175m partial buy-in with the Pension Insurance Corporation (PIC), covering liabilities for the remaining 1,378 uninsured scheme members, around 97% of which are deferred members.

This is the sixth partial buy-in undertaken by the scheme, with PIC having insured approximately £1bn of liabilities sponsored by IMI plc since 2016, including a £250m partial buy-in in January 2022.

PwC acted as lead transaction advisors for the IMI and pension scheme's joint working group, while the scheme also received actuarial advice from WTW, investment advice from Aon, and legal advice Squire Patton Boggs.

PIC head of pricing Tristan Walker-Buckton highlighted the "very high proportion" of deferred members as a key aspect of the deal, explaining that insuring these members required "close collaboration with the trustee".

She added: "We are naturally very proud to have been able to complete this final transaction with them.

“We were able to offer a solution for the fund’s illiquid assets by providing flexibility in the payment structure, enabling the trustees to transact when they wanted to rather than waiting to sell down their remaining illiquid assets.

"IMI is an excellent example of how a first class de-risking exercise should be run and the trustee should be congratulated on the execution of their plan.”

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