UK roundup: Engineering scheme completes buy-in

first_imgAccording to recent analysis from Hymans Robertson, two-thirds of buy-in and buyout volumes over the next 10 years will likely be driven by “mega-transactions” of more than £1bn each.This could make it harder for smaller pension schemes to achieve the engagement necessary with insurers for many years to come, it said.James Mullins, head of risk transfer at Hymans Robertson, said: “Smaller pension schemes will need to work harder to demonstrate why they are an attractive case to the insurers.”Peter Jennings, business development manager, at Just Group, said: “As specialists in small and medium-sized deals K3 know what it takes to make their projects attractive in a crowded market.”He added that the simplicity and efficiency of K3’s approach meant NG Bailey ”got maximum insurer engagement and ultimately a price that worked for all parties.”Mike Porter, chief financial officer at NG Bailey, said: “As a proud family business with a long tradition of looking after our employees throughout their careers and into retirement, we were keen to secure the benefits of our pensioners at a cost that worked for shareholders and trustees.”CMI assesses impact of COVID-19 on total UK deathsDuring the coronavirus pandemic, the Continuous Mortality Investigation (CMI) is publishing weekly UK mortality analysis through its mortality monitor.This week’s update shows the position as at week 16 (11 to 17 April) based on provisional England and Wales deaths data published by the Office for National Statistics (ONS) on 28 April 2020.The latest update shows that:There were 2.4 times as many deaths registered in week 16 of 2020 than if death rates had been the same as week 16 of 2019. The ratio was 1.8 in week 15 and 1.6 in week 14.These ‘excess’ deaths in week 16 were 1.5 times the number of registered deaths where COVID-19 was mentioned on the death certificate.There may have been around 45,000 more deaths in the UK for the year to 27 April 2020 than if mortality rates were similar to those experienced in 2019.Cobus Daneel, chair of the CMI mortality projections committee, said: “Our ongoing analysis suggests that the true impact of the coronavirus pandemic is roughly double that of commonly-quoted figures for deaths in hospitals.”He noted that this not only shows that a large number of COVID-19 deaths are occurring outside hospitals, but also suggests that there are significant knock-on effects not directly attributable to the virus.Whatever the circumstances, risk management should not stop in a crisis, said Paul Harwood, member of the risk management board at the Institute and Faculty of Actuaries, whcih supports CMI.“Crises are defined after the event by the quality of the decisions made. There is a temptation under pressure to make fast decisions based on limited, usually operational, data. Whatever the level of planning, the risk management function can bring relevant factors into discussion, adding extra context to the fact base being used,” he said.“The best risk managers will ensure that their contribution does not slow up decision making and, even more useful, provide a regulatory tick.” NG Bailey, an engineering group that helped deliver the Manchester Nightingale Hospital which was completed in just 13 days a few weeks ago in the fight against COVID-19, has completed two buy-in deals worth a total of £66m (€75m) for its £400m pension scheme.K3 Advisory, a bulk annuity and consolidator advisory firm, has advised and completed the deal with Just Group, a retirement products and services company.There was an original transaction for £49m, followed by a second one worth £17m, the firm announced.Adam Davis, managing director at K3 Advisory, said: “The billion-pound transactions continue to get the headlines but underneath the surface the activity in the small and medium scheme space continues to grow significantly.”last_img

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