LCP has advised on a further buy-in transaction of c £190 m between Just Group (“Just”) and the Trustees of the Ibstock Pension Scheme. This builds on an existing £340m buy-in policy secured in 2020 which covered the majority of the Scheme’s pensioner members and means that benefits in respect of all scheme members are insured by Just. 

This second buy-in transaction was made possible by the rise in gilt yields and very attractive pricing in the second half of 2022, whilst the existing relationship meant both Just and the Trustees, with the full support of the sponsor, were able to move quickly to lock in terms.  

Of particular interest were the innovative solutions that Just, the Trustees and the sponsor were able to agree for aligning the timings for premium payment to be synchronise with the timing of the Trustees being able to realise the Scheme’s assets, with a minority of its investments being either illiquid or subject to long notice periods.    

The Trustees were advised by LCP, Buck and Addleshaw Goddard.  

Rachel Tranter of BESTrustees, Chair of Trustees of the Ibstock Pension Scheme, said: “The Trustees, working collaboratively with the sponsor, had a strategy of targeting full insurance over the next few years, and we’re delighted to have reached that target sooner than expected.  This was a massive team effort from the Trustees, the sponsor, all the advisers and Just to be able to transact over a very short timeframe with all parties working very effectively together to come up with a workable solution for some of the illiquid assets.  We’re thrilled to have reached the point where the benefits for all our members are covered by insurance policies.” 

Rob Mechem, DB Commercial director at Just, said: “There was a lot to be proud of with this transaction. We are delighted that the Trustees again chose Just as their partner to entrust their members financial security. It was also an opportunistic transaction and as is often the case with such deals was conducted at speed, requiring solution focused mindsets and pragmatism from all stakeholders.” 

David Stewart, Partner at LCP said: “It has been wonderful working with the Trustees again to secure this excellent outcome for members.  I think this is a great example where the Trustees maintained a strong relationship with Just and were able to react nimbly with the sponsor and other advisers to take advantage of the pricing opportunity in the market. The Just team were able to tailor their proposal to make the transaction possible, taking into account the particular constraints on realising some of the Scheme’s assets which highlights there are solutions available for schemes with illiquid assets.