Pension buy-in/buy-out breakfast briefing (larger schemes)
6 March 2012 8:20AM

Buy-in/buy-out for larger schemes.

This is a repeat of the breakfast briefing held on 1 November 2011.

January 2012 marks the fifth anniversary of the first £100m "new style" pensioner buy-in, which LCP designed and executed for Hunting plc. Since then, there have been more than 50 buy-in and buy-out transactions over £100m. This briefing assesses market opportunities for pension schemes looking to execute buy-ins and buy-outs between £100m and £1bn. The session will address topics including:

• How buy-in and buy-out compare to managing risk in the pension scheme.
• How will shareholders and investors react to a transaction?
• Designing a suitable governance process with input from the company and the trustees.
• How to achieve the best commercial terms and price.
• The pros and cons of additional protections - such as collateralisation and the option to exit the contract if the insurer gets into financial difficulties.
• How to maintain insurer focus and execute quickly when your target price is met.

Guest Speaker

Jane is a partner in Mayer Brown International LLP's insurance group. She has advised insurers and trustee boards on a significant number of buy-in and buy-out transactions over recent years, including during 2011, a £278m buy-in with Prudential for the Home Retail Group Pension Scheme and a £25m buy-in with Legal & General for the Ofcom (former ITC) Staff Pension Plan, following on from Ofcom's £150m buy-in with Legal & General in 2008. 

This briefing is appropriate for Chief Executives, Chief Financial Officers, Finance Directors, Non-Executive Directors, Chairman of Trustees and other senior corporate decision-makers looking at buy-in and buy-out as part of their pension de-risking strategy.