Delta Pension Scheme

5th June 2008

In June 2008, the Delta Pension Plan transferred responsibility to pay its pensioners-in-payment to PIC in a £453 million partial insurance transaction.

Almost two-thirds of the pension fund liabilities and the associated assets transferred out of the Delta Pension Plan to PIC via a bulk transfer of assets and liabilities to a mirror scheme.

This innovative solution created additional value for shareholders of Delta plc as the assets and liabilities were removed from Delta's balance sheet and financial reporting (unlike a "buy-in" where the assets and liabilities remain on the balance sheet).

The positive impact of removing pension risk on Delta shareholder value was demonstrated by the favourable reaction of the markets to the partial buyout. Delta's share price rose 10% on the day it was announced.