Allied Domecq completes £3.8bn buy-in with Rothesay
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The Allied Domecq Pension Fund has completed a £3.8bn buy-in with Rothesay Life, covering 17,000 pensioners and 10,000 deferred members.
It is the largest buy-in to date covering deferreds according to Hymans Robertson, who advised on the deal, and follows Rothesay's recent buyout agreement with Telent's GEC 1972 Plan for £4.7bn.
It is the largest buy-in to date covering deferreds according to Hymans Robertson, who advised on the deal, and follows Rothesay's recent buyout agreement with Telent's GEC 1972 Plan for £4.7bn.
The transaction brings the total volume of buy-in and buyouts announced in 2019 to £30.6bn, already surpassing the £24.2bn insured in 2018.
“This buy-in is a key step on a long journey of derisking taken by the fund, with strong support along the way from the sponsoring company. It represents a major achievement, improving security for all our members," said Lisa Arnold, the fund’s chairman of trustees.
Cédric Ramat, EVP human resources, sustainability and responsibility at Pernod Ricard, which owns Allied Domecq (Holdings), said: “Pernod Ricard is very pleased that the trustee of the Allied Domecq Pension Fund has been able to conclude this buy-in with Rothesay Life. This transaction reduces the group’s exposure to long-term risks associated with the fund and is a significant milestone in the journey to secure the benefits earned by the group's employees and former employees as members of the Allied Domecq Pension Fund.”
