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LCP advises on
£340m buy-in between Just Group and Ibstock Pension Scheme

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LCP advised on a £340m buy-in transaction with Just Group for over 1,800 pensioners of the Ibstock Pension Scheme, incorporating over 50% of the total pension liability in the scheme. Ibstock PLC is one of the UK’s market leading manufacturer of concrete building products.

The transaction represents a notable move in the Ibstock Group's strategy of de-risking its pensions exposure and provides further security for all members of the pension scheme.

The trustees were advised on the transaction by LCP, Buck (as the Scheme Actuary, investment adviser and administrator to the scheme) and their legal advisers Addleshaw Goddard, while Pinsent Masons provided legal advice to Just.

David Stewart partner at LCP, said: “We are really pleased to have helped the trustees overcome the hurdles thrown up by Covid-19 to lock into pricing materially better than pre Covid-19 levels. This was a significant step in the trustees’ de-risking journey helping them secure around half of the scheme’s liabilities while reducing the shortfall required to meet their long-term goal. Since the start of lockdown LCP have helped 23 schemes take advantage of the attractive pricing post Covid-19.”

David Richardson, Group Chief Executive Officer at Just Group, said: “We are pleased to have supported the trustees and sponsor of the Ibstock Pension Scheme in their de-risking journey to help members. This is a significant milestone for our Defined Benefit Solutions business. It’s our largest single transaction to date and marks our 200th transaction. We have written over £7.5bn of premiums to secure the benefits of over 30,000 members since we entered the defined benefit de-risking market in 2012.”

Rachel Tranter, Director of BESTrustees and the chair of trustees for the Ibstock Pension Scheme, said: “I am delighted to have been able to lead the trustees of the Ibstock Pension Scheme to take practical and cost-effective steps to improve the security for all members of the scheme. Just provided clarity during a time of huge global uncertainty and our advisers skilfully guided us through the process to a successful conclusion; we always felt in safe hands and we’re pleased with the end result.”

Finding certainty in uncertain times

Finding certainty in uncertain times

Pensions de-risking report

How resilient has the buy-in, buy-out and longevity swap market been to Covid-19, and what opportunities are available to pension plans looking to insure their pension liabilities?

Download the report