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.
As Head of LCP Trustee Consulting, I have responsibility for ensuring that LCP remains at the forefront of innovations in advice, thinking and technology for the benefit of our Trustee clients.
Day-to-day, I am a Scheme Actuary and Partner in our longevity de-risking practice. I have particular expertise in establishing effective and joined-up funding and investment strategies, and in helping my clients to design and implement long-term strategic journey plans.
I advise the trustees and companies of some of the UK’s largest pension funds, helping them to understand, prepare for, and implement longevity hedging strategies through the use of buy-ins, buy-outs and longevity swaps. My focus on designing optimal risk reduction strategies led me to develop the idea for our longevity risk-measurement tool, LCP LifeAnalytics.
I have led a number of innovative and complex transactions, ranging in size from £50m to over £3bn. You can read about how we helped the ICI Pension Fund here. I have specialist experience in PPF+ cases, collateralised buy-ins and full buy-ins/outs, which I have led both as a de-risking specialist and scheme actuary.
I focus on clear communication and working collaboratively with all stakeholders to develop bespoke solutions that meet the objectives of all parties.
Example transactions include:
- FTSE 100 - £300m full buy-in (2018)
- PA Pension Scheme - £850m full buy-in, for which I was also Scheme Actuary (2018)
- Marks and Spencer - £1.4bn buy-ins (2018)
- 3i - £200m and £100m pensioner buy-ins (2017 and 2019)
- ICI - 9 x collateralised pensioner buy-ins totalling £7bn (2014 to 2016)
- MIRA - £70m PPF+ buy-out, for which I was also Scheme Actuary (2015)
- Northern Bank Pension Scheme - £680m collateralised pensioner buy-in (2015)
- First Quench - £160m PPF+ buy-out (2013)
- Uniq - £830m PPF+ buy-out (2011)
- GSK - £900m collateralised pensioner buy-in (2010)
Thank you for the professional way in which you steered us through this complex project. Your advice was robust and clearly communicated, helping us to achieve an excellent outcome for our scheme and its members. As I have said a number of times, I wouldn’t expect anything less from LCP!
Our latest thinking
In this video, Michelle Wright looks at the importance of understanding how much longevity risk your pension scheme is running.
LCP has reported a record income for the financial year 2018/19 as the firm positions itself for future growth in traditional areas via developing new innovations and technological offerings.21 August 2019
LCP's 2019 Longevity report finds fewer deaths reported in 2019 so far than in recent years, resulting in increased life expectancies and increasing the value of pension scheme liabilities.20 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
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 Northern Bank to address longevity risk with a £680m collateralised pensioner buy-in
Charting mortality trends signposts for an uncertain journey
Our report analyses recent trends in mortality and the emerging evidence from the ONS that there have been fewer deaths reported in 2019 so far than in recent years.
Navigating the pensions journey
Our new report sets out a blueprint for trustees to navigate their journey to securing member benefits.
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 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 provide individual and high quality actuarial advice, taking a collaborative approach between trustees, employer and advisers, to ensure a focus on good member outcomes.Meet some of our experts
We are market leaders at each stage of de-risking, including planning, investment strategy, transactional services and wind up.Meet some of our experts
LCP LifeAnalytics is a unique tool that allows you to measure the longevity risk in your pension scheme.Meet some of our experts