The SCA UK Pension Plan, which is part of the Essity group, has completed a £1.1bn (€1.3bn) buy-in deal with Legal & General Assurance Society, securing the benefits of 5,900 retirees and 3,600 deferred members.

Essity, a global hygiene and health company headquartered in Stockholm, has approximately 1,600 employees in the UK across six manufacturing sites and three commercial sites.

Following a review of the insurers in the market, the plan and sponsor chose to work in partnership with L&G to achieve their transaction objectives, adding that the firm provided certainty and transparency about its pricing and terms.

L&G already has a long-standing relationship with the plan, which has been a client of L&G’s asset management division for 31 years.

LCP acted as lead transaction adviser and advised the plan’s trustees in all aspects, while Slaughter and May provided legal advice and Muse Advisory acted as pensions manager. WTW and Clifford Chance advised the sponsor. CMS Cameron McKenna Nabarro Olswang supplied L&G with legal advice.

Carol Woodley, chair and independent trustee director at the fund, said: “I’m delighted that the trustees, Essity, Legal & General and our advisers have been able to work together to complete this transaction. It is good news for our members and increases the level of security that their pension benefits will be paid in full.”

She noted that “the outcome was only possible in the time frame as a result of the great team effort between everyone involved”.

Andrew Kail, chief executive officer of Legal & General Institutional Retirement, said the transaction allowed the insurer to deepen its existing relationship with the plan and create greater security for its members.

“We are continuing to see an acceleration in demand across the sector with c£1.4trn of DB pension scheme assets sitting on UK company balance sheets,” he said.

“Our long-standing relationships with clients, including through our asset management division, allow us to support pension schemes through their de-risking journey, working in collaboration with clients such as the SCA UK Pension Plan to maximise outcomes for plan members and trustees,” he added.

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Pamela is IPE's UK correspondent. Before joining IPE in May 2023, she spent five years writing about the insurance industry. During her career so far she won awards for Most Promising Newcomer in 2020 and Best Investigative Article in 2022 from the British Insurance Brokers Association, and was also highly commended at the WTW Media Awards for Insurance Features Journalist of The Year.View full Profile

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