PIC completes £870 million full buy-in of the De Beers UK Pension Scheme

PIC, a specialist insurer of defined benefit pension schemes, has concluded an £870 million full buy-in of the De Beers UK Pension Scheme ('the Scheme'). The transaction secures the pensions of both deferred and pensioner members of the Scheme, which is sponsored by De Beers UK Limited ('the Company'), comprising 1,464 current pensioners and 473 deferred members.

Founded in 1888, De Beers Group is the world’s leading diamond company, with expertise in diamond exploration, mining, grading, marketing and retail. Together with its joint venture partners it employs more than 20,000 people throughout the world.

Mike Page, Chair of Trustees for the Scheme, said: “This buy-in is the result of many years of hard work as we pursued a long-term de-risking strategy. I want to thank my fellow Trustees and our professional advisers, Hymans Robertson, Barnett Waddingham and Linklaters for their role throughout the process in scoping and executing the transaction, which further increases the security of Scheme members’ benefits. PIC was selected for its flexibility and ability to complete the transaction in volatile markets, as well as its overall track record, including a deep-seated commitment to customer care.”

Tristan Walker-Buckton, Co-Head of Origination at PIC, said: “PIC is proud to have worked with the Trustees of the De Beers UK Pension Scheme to de-risk the Scheme, removing the risk associated with the Scheme from the Company’s balance sheet, and providing security to all their members for the long-term. 2024 has started strongly in the pension risk transfer market and we expect another record-breaking year.”

Dr Richard Wellard, Partner at Hymans Robertson, said: “We are pleased to have been able to help the Trustees secure their members’ benefits and achieve their goal. It reflects the vibrant bulk annuity market, but also the preparedness of the Scheme, which is a vital factor in ensuring that insurers focus on a particular transaction over the many other opportunities brought to them.”

PIC was advised by CMS Cameron McKenna Nabarro Olswang LLP and the De Beers Trustees were advised by Linklaters LLP.

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Notes to Editors:

For further information please contact:

PIC 
Clive Booth    
+44 (0) 7780 599247 
[email protected]

 

Apella Advisors                                
Arne Wysny 
+44 (0) 7818 497469
[email protected]

 

About PIC
The purpose of PIC is to pay the pensions of its current and future policyholders. PIC provides secure retirement incomes through comprehensive risk management and excellence in asset and liability management, as well as exceptional customer service. At year end 2023, PIC had insured 339,900 pension scheme members and had £46.8 billion in financial investments, accumulated through the provision of tailored pension insurance buyouts and buy-ins to the trustees and sponsors of UK defined benefit pension schemes. PIC has made total pension payments of £13.6 billion to its policyholders and has invested £13 billion in the UK economy, creating considerable social value. Clients include FTSE 100 companies, multinationals and the public sector. PIC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority (FRN 454345). For further information please visit www.pensioncorporation.com