United Utilities strikes £1.8bn pension deal with L&G

Written by Adam Cadle

13/07/2023

United Utilities has insured £1.8bn in liabilities for its pension funds through a buy-in with L&G.

The deal covers the benefits of United Utilities Pension Scheme and the United Utilities PLC Group of the Electricity Supply Pension Scheme.

In a statement, the FTSE 100 water group said: "United Utilities has a strong balance sheet and, significantly, a fully funded pension scheme.

"As a consequence of this robust financial position, the pension scheme trustees have taken the next step in their de-risking strategy and are insuring around two thirds of the pension liabilities with L&G to ensure even greater long-term security of the schemes.

"This enhances United Utilities' financial resilience with the lowest level of gearing in the sector at 58% and sufficient liquidity to cover cashflow out to at least 2026."

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