Lucite International UK Pension Fund, a scheme sponsored by Mitsubishi Chemical UK (MC UK), has completed a £130m buy-in deal with Just Group.
The transaction was completed in March 2024 and secures the benefits of 438 uninsured members, including 156 pensioners and dependants and 282 deferred members.
The transaction completes the buy-in of all scheme liabilities.
Just Group reported total defined benefit (DB) sales (including DB partner sales) in 2023 of £3.4bn, up 21% on the previous year. It completed 80 transactions which is estimated to be over one-in-three of all deals completed in the market in 2023, more than any other provider.
It is expected that bulk purchase annuity deals could reach £80bn this year.
Kevin Leith, trustee chair, said the transaction was a “truly collaborative process” with all stakeholders working closely to complete the deal.
He said: “WTW led a thorough and competitive selection process, following which we chose Just as our preferred partner. We were impressed by Just’s commitment to member experience and its ability to tailor its proposition to meet our needs. I’d like to thank the MC UK management team for its support throughout this process, as well as our advisers and the team at Just.
“We now look forward to building on this success and working with Just in the next phase of our journey.”
Martin Parker, senior business development manager at Just Group, added that there is a vibrant insured de-risking market for schemes of all sizes.
He said: “We are proud to have been entrusted to deliver the long-term financial security to members of the Lucite International UK Pension Fund.”
Greg Robertson, director in WTW’s transactions team, said: “We are delighted to have advised the trustee on this transaction.”
He said that there were a number of benefit complexities, which WTW worked closely with Just to structure and implement.
He said: “Despite these complexities, the trustee was able to navigate a busy market and obtain multiple quotations by presenting a clear strategy that maximised engagement.”
WTW was the lead adviser to a joint working group for this transaction, as well as scheme actuary and investment adviser. Legal advice was provided to the Trustee by Squire Patton Boggs. Just Group received internal legal advice.
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