PIC completes three buy-ins worth £900 million with Baker Hughes

PIC, a specialist insurer of defined benefit pension schemes, has concluded simultaneous buy-ins with three schemes sponsored by Baker Hughes ('the Company'): the Baker Hughes (UK) Pension Plan, the Brush Group Pension Scheme, and the Pipeline Integrity International (PII) Group Pension Scheme. The buy-ins cover liabilities of £900 million and secure the pensions of over 3,000 pensioners and dependants, and nearly 4,000 deferred members. 

Baker Hughes is an energy technology company headquartered in Houston, Texas and London, UK, conducting business in over 120 countries.

Sally Minchella, Director at Law Debenture and Chair of the Baker Hughes (UK) Pension Plan, said: “Achieving this transaction in expedited timescales is a great result for members and is testament to the highly collaborative approach between the trustees of all three schemes, the Company, PIC and the hard work of our advisory teams.”

Andrew McKinnon, Chair of the Brush Group Pension Scheme, said: “We selected PIC due to their track record and focus on members, combined with their ability to meet our specific requirements. I’d like to thank our advisers for their hard work over many years to get the Scheme to this point.”

Colin Mcfadden, Chair of the Pipeline Integrity International (PII) Group Pension Scheme, said: “We are very pleased to have completed this transaction which improves security for our members. The PIC team showed a flexible and innovative approach to ensure our members’ needs were met. I’m very grateful to our advisers for their hard work on this project and historically.”

Matt Richards, Head of Origination Structuring at PIC, said: “It’s very rewarding having concluded these buy-ins with Baker Hughes. Each of the schemes covered had specific requirements that needed specialist structuring. It’s thanks to the fantastic teamwork of everyone involved that we were able to conclude the deal in a relatively short time frame.”

Shelly Beard, Managing Director at WTW, said: “It was great to lead this highly complex transaction for the three schemes, which required deep market knowledge, excellent teamwork and strong project management to meet everyone’s objectives.”

WTW led the transactions and CMS provided transaction legal advice for all three Schemes.  WTW is the Scheme Actuary, LCP are the investment adviser, CMS are the legal adviser, and Aptia are the administrator to the Baker Hughes (UK) Pension Plan. Aon is the Scheme Actuary, administrator and investment adviser, Squire Patton Boggs are the legal adviser, and Cardano are the fiduciary manager to the Brush Group Pension Scheme. First Actuarial provide actuarial, administration and investment services, and Irwin Mitchell are the legal adviser, to the Pipeline Integrity International (PII) Group Pension Scheme.  PwC provided financial strength advice to the three Schemes. WTW and Baker McKenzie advised Baker Hughes.  PIC was advised by Herbert Smith Freehills.

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For further information please contact:

Apella Advisors for PIC                  
Arne Wysny   
+44 (0) 7818 497469           
PIC@apellaadvisors.com