Broadstone has advised on a full scheme buy-in for the Lowman Pension Scheme (“the Scheme”) with Legal & General (L&G) for a £10m premium.
The scheme is sponsored by a mid-Devon based property management company, Lowman Manufacturing Limited (“the Company”).
The transaction secures the full benefits of all 115 uninsured members, comprised of 52 deferred members and 63 members with pensions in payment, and completed in March. The Company had set aside a reserve to meet any shortfall and the thorough preparation meant that pricing received came well within budget.
The Scheme’s existing administrator did not have the experience and capacity to prepare for a bulk annuity market approach, so Broadstone’s SM&RT Insure – Admin stepped in, adding to its existing actuarial, investment consultancy and recently appointed risk transfer advice services provided to the Scheme. Broadstone was able to provide insurer data within 3 months of the administration going live, enabling its SM&RT Insure risk broking team to work with L&G and rapidly transact the buy-in.
Having reviewed the wider market, the Trustees selected L&G’s Flow solution for smaller pension schemes.
Chris Rice, Deal Lead and Head of Trustee Services at Broadstone, commented: “When we started discussing a potential buy-in last year, with the Company setting aside funds to facilitate the transaction, it quickly became clear that dedicated and expert administration support was required. It is satisfying that Broadstone’s administration could deliver market-ready data so quickly and facilitate this transaction with L&G at pace.”
Bruce Beacham, Chair of Trustees, said: “After two past buy-ins and a bulk transfer out of the defined contribution section, it is rewarding now to have secured the benefits of our remaining members. L&G was a natural partner to consider given they were already heavily involved in the Scheme. We are grateful to Broadstone for the administration support and helping to secure a price that was well within the Company’s reserve.”
Dominic Moret, Head of Origination and Execution, Institutional Retirement at L&G, added: “This transaction demonstrates how our Flow proposition can deliver certainty, efficiency and smooth execution for schemes approaching their endgame. By novating the Scheme’s existing L&G asset holdings, the buy-in price was directly aligned to those assets, effectively locking in pricing and giving Trustees confidence in the outcome. The approach helps minimise costs, remove unnecessary market risk, and supports schemes in achieving a well-matched, efficient transition to securing positive outcomes for their members.”
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