In this blog, Charlie Finch explores what is driving this trend and why the market has reached a tipping point.
I joined LCP in 2000 and provide pensions advice to both companies and pension plan trustees with particular focus on strategic advice and longevity de-risking.
I jointly set up LCP's award-winning buy-in, buy-out and longevity swap practice in 2006 and have since helped many clients to design and implement buy-ins and buy-outs to reduce longevity risk. Transactions range from £10m to over £3bn including some of the most innovative in the UK such as for the ICI and Philips pension funds.
Advising from a strategic level right down to execution requires a wide range of skills – funding, investment strategy and a deep understanding of the de-risking markets. I find nothing is more rewarding than helping clients achieve meaningful steps and delivering results that exceed their expectations.
What clients say about me
- "I want to thank you and your LCP colleagues for your excellent work in achieving this outcome. Your professional, calm and considered approach to managing the project and reporting to the Steering Group and the Board has been greatly appreciated."
- "Your project management has been impeccable, and there is simply no way we could have achieved anything like what we have without it."
The buy-in process we have recently concluded required patience and tact to accommodate all the concerns and views of the various trustees. All steps in the process were explained simply and additional advice/explanation given when asked for...often repeated but without any judgement.
Our latest thinking
In this pensions de-risking update we look at the latest developments in buy-ins, buy-outs and longevity swaps, including: facts and figures for H1 2018.
Analysis by Lane Clark & Peacock (LCP) shows that total buy-in and buy-out volumes by UK pension schemes reached £17.6bn in H1 2019 (H1 2018: £7.8bn) taking total volumes to £34.0bn over the 12 months to 30 June 2019. This is the busiest 12-month period ever recorded, more than doubling the £14.9bn in the previous 12 months (to 30 June 2018).8 August 2019
LCP were the lead transaction adviser on the purchase of a buy-in policy by the Trustee of the British American Tobacco UK Pension Fund with Pension Insurance Corporation totaling £3.4 billion of liabilities.1 August 2019
LCP predicts that volumes of pension buy-ins and buy-outs completed by UK pension plans will top £15 billion for H1 2019, doubling the H1 2018 volumes of £7.8bn, which were a then record.25 June 2019
How I have helped our clients
How we helped one of the largest DB pension plans in the UK, ICI Pension Fund, progressively insure their longevity risk using innovative umbrella contracts
How we helped Aggregate Industries to effectively manage their pension risk with buy-ins, securing half of their liabilities and providing increased financial certainty.
Accounting for Pensions 2019
With the FTSE 100 maintaining their pension accounting surplus, it is time for companies to embark on the next stage of their pensions journey. Our Accounting for Pensions 2019 report presents a concise analysis of the key facts, figures and trends.
LCP Pension de-risking 2019
Our report this year finds that the insurance market is entering a pension scheme buy-out boom due to improved affordability, driven by stalling life expectancies, good asset performance and attractive insurer pricing.
LCP Vista Issue 8
LCP Vista keeps you informed of our latest investment thinking - Issue 8 aims to highlight some innovative investment ideas, from asset classes through to investment strategy.
LCP Pension de-risking 2018
Our 2018 de-risking report on the buy-in, buy-out and longevity swap market comes at a time when pension de-risking is more exciting than ever.
How I can help
We are market leaders at each stage of de-risking, including planning, investment strategy, transactional services and wind up.Discover more
LCP LifeAnalytics is a unique tool that allows you to measure the longevity risk in your pension scheme.Meet some of our experts
We help pension scheme trustees and sponsors to determine the ultimate destination for their scheme and help them put together a plan to get there, including how to effectively manage the risks they face along the way.Discover more