£85m Buy-In Deal Completed By Willis Towers Watson For Aliaxis Defined Benefit Pension Scheme


    Today, Willis Towers Watson, an insurer that is based in London, made an announcement that it had agreed with Just Group to a buy-in deal amounting to £85m of the Aliaxis UK Defined Benefit Pension Scheme.

    The said payments were completed in two tranches that were divided between a sum of £35 million in November 2016, and a payment of £50m last December.

    The said deal covers 350 of the uninsured pensions of the scheme which are in payment.

    Willis Towers Watson said that in this way, structuring the payments gave the trustees a better deal as it delivered a larger price in a timely manner.

    A statement that was released by the trustees of the scheme stated: “Following the success of the first buy-in transaction, the trustees were happy to continue our partnership with Just.”

    It added: “The second transaction has further increased the security of our members’ benefits at a price that was very attractive to the trustees.”

    London-based insurer Willis Towers Watson stated: “This was a very interesting transaction that required a new approach to secure the best value for the trustees. Splitting the transaction into two parts allowed us to secure efficiencies for our client in both the process and pricing – and being able to medically underwrite the first transaction secured a further material cost-benefit.”

    It added: “The trustees’ existing relationship with Just meant that they were able to move quickly to secure favourable terms within a short period of time at the end of 2017.”

    Just Group continued: “The financial benefits of medically underwriting buy-ins is well appreciated, but by splitting this transaction into two the benefits were increased.

    It added: “The concentration of risk of the largest liabilities was removed first taking advantage of medical underwriting, and the terms were available for a quick second transaction at a time which suited the trustees and resulted in optimal pricing.”