Pensions - Articles - Pension Insurance Corporation insures LSE's Pension Scheme

 PENSION INSURANCE CORPORATION INSURES LONDON STOCK EXCHANGE PENSION SCHEME IN INNOVATIVE TRANSACTION

 London, 13 May 2011 – Pension Corporation, a leading provider of risk management solutions to defined benefit pension funds, today announces that the Trustees of the

 London Stock Exchange Pension Scheme (“the Scheme”) have entered into a pension insurance agreement with Pension Insurance Corporation (“PIC”) to insure around £200 million of the scheme’s liabilities. The insured liabilities cover the Scheme’s pensioner members.             

  As part of the transaction, LSE and PIC have also agreed to create a unique and innovative structure which will enable the Scheme to insure future pensioners in annual tranches over the next five years.

  Jay Shah, Co-Head of Business Origination, Pension Insurance Corporation, said: “We are delighted to have insured another very well-known company scheme and to work with KPMG through this process. Financial analysts are increasingly sensitive to pension scheme volatility and the demands this can make on the company. We are seeing a swell of activity as even the largest companies, both UK and multi-national, seek to manage their pension exposures”.