Rexam Pension Plan in £1.4bn buy-in deal with Rothesay

Rexam Pension Plan has completed a £1.4bn full scheme buy-in with Rothesay, securing the benefits of over 14,000 members of the scheme.

This includes defined benefit (DB) liabilities for 9,790 pensioners and dependants and a further 4,330 deferred members.

Rothesay said the buy-in represents a single premium insurance policy covering risks and no contribution was required from the sponsor.

The scheme is sponsored by Ball Corporation, a supplier of sustainable aluminium packaging solutions for beverage, personal care and household products.

Having agreed to structure the insurance premium as a specified pool of assets owned by the scheme, the economics of the transaction were fixed in August 2023.

The trustee, sponsor, Aon – which acted as a lead broker on the transaction – and Rothesay have worked together collaboratively since then to underwrite the residual risks of the scheme, it was announced.

WTW provided actuarial advice and project management to the trustee. LCP is the plan’s investment adviser. Rothesay and the scheme received legal advice from Eversheds Sutherland and Sackers, respectively. A&O provided the company with legal advice.

The buy-in was one of 12 pension schemes Rothesay was able to assist in their de-risking journey in 2023, resulting in total new business premiums for the year of £12.7bn.

Chris Martin, executive chair at IGG and chair of trustees at the Rexam scheme, said: “This is a significant milestone in our de-risking journey and we are delighted to have been able to achieve this outcome for members by working in collaboration with Rothesay.”

He added: “I would particularly like to thank my colleagues on the trustee board and within Ball Corporation, including the fantastic in-house pensions department, as well as the plan’s excellent advisory teams for their collaborative and diligent approach which enabled the delivery of such a great result.”

Cleo Taylor Smith, business development at Rothesay, said that last year was one of “busiest ever” for Rothesay, with £12.7bn marking the second largest volume of annual new business it ever completed.

She said: “2024 is looking equally, if not more, exciting with a currently unprecedented pipeline. Rothesay’s strong capital position and proven capability to execute large and complex transactions, like for the Rexam Pension Plan, mean that we are very well-placed to meet this opportunity.”

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