The G4S Pension Scheme has completed a £1.8bn (€2.2bn) full buy-in deal with Just Group — its largest insurance de-risking transaction to date — covering the benefits of around 22,500 members

The trustee selected Just Group following a highly competitive and rigorous selection process, it was announced.

This is the largest publicly announced deal in the bulk purchase annuity market this year, according to Just Group.

The scheme’s funding level had improved in recent years, enabling the trustee and company – a British multinational private security company – to accelerate their plans to de-risk the scheme. Both parties jointly approached the market and worked collaboratively to secure an attractive outcome for members.

A key focus for the trustee was to enhance the long-term security of members’ benefits and ensure good member experience. The trustee undertook a bespoke, careful due diligence process which resulted in the selection of Just Group.

The trustee was advised throughout the process by Aon, while LCP provided advice to the company. Legal advice was provided by Gowling WLG to the trustee, by Freshfields to the company, and by CMS to Just Group. Cardano acted as covenant adviser and fiduciary manager.

Allan Course, of Capital Cranfield and chair of trustees, said: “Our focus has always been on ensuring that the promises made to our members are kept, and this buy-in allows us to safeguard those commitments with confidence.”

He added: “The buy-in with Just not only enhances the security for members, but also ensures they receive the care and service they deserve.” 

Pretty Sagoo, managing director, defined benefit solutions, at Just Group, said: “There is a vibrant insurance de-risking market for schemes of all sizes and Just are delivering outstanding service to small schemes, large schemes and everything in between.”

Ashley Almanza, executive chair of G4S, added: “Supporting the members of the pension schemes has always been a key priority for G4S Limited and the company has paid very material contributions into the schemes, on behalf of members, over many years. It is extremely pleasing to have worked in close collaboration with the trustees to agree a major buy-in that secures the position of the pension scheme members.”

The latest digital edition of IPE’s magazine is now available

Topics