Investment - Articles - Rothesay secures buyin with The Medical Protection Society

£125m full scheme buy-in insures all members of the MPS Pension Scheme. Transaction secures the benefits of over 600 policyholders – 174 pensioners and dependants as well as 444 deferred members. The buy-in follows Rothesay’s acquisition of Scottish Widows’ c.£6bn bulk annuity portfolio earlier this year.

 Rothesay, has completed a £125m full scheme buy-in with the MPS Pension Scheme (the “Scheme”).

 The Scheme is sponsored by The Medical Protection Society Limited (the “Company”), the world’s leading member-owned, not-for-profit protection organisation for doctors, dentists and healthcare professionals.

 The buy-in secures the benefits of all 618 Scheme members comprising 174 pensioners and dependants, and 444 deferred members. This was the Scheme’s first transaction and no contribution from the Company was needed, with the Scheme being in surplus.

 Gowling WLG provided legal advice to the Trustee while Rothesay received legal advice from Eversheds Sutherland. Isio acted as the lead broker on the deal.

 The completion of this transaction continues Rothesay’s strong momentum in the pension risk transfer market following the announcement, in March 2024, that it agreed to acquire Scottish Widows’ c.£6bn bulk annuity portfolio from Lloyds Banking Group, covering 42,000 underlying policyholders.

 Katie Overton, Business Development at Rothesay, commented: “We are pleased to secure the future for the Scheme’s over 600 members. In a very buoyant market, this was a well-prepared scheme which supported the quick and efficient execution of this de-risking transaction. Following a busy first quarter this year, Rothesay continues to see very strong momentum in the pension risk transfer market with an unprecedented pipeline of new business. Our substantial capital resources and proven execution capabilities mean we are very well-placed to capitalise on the significant opportunities we are seeing.”

 Richard Pile, Chief Financial Officer at The Medical Protection Society Limited, said: “We are delighted to secure the pensions of all our Scheme members through this transaction. Given improved funding levels and the hard work we put in to preparing the Scheme for its end-game, we were able to work quickly with all parties to achieve a great outcome in a busy market.”

 Colin Richardson, Sole Trustee, Zedra Governance Limited, said: “Given the level of competition in the market, this transaction is evidence of the importance of effective scheme preparation. Following the diligent advice and guidance of Isio and Gowling, we gained the interest of 5 insurers, ultimately electing to partner with Rothesay on account of their high-quality offering and good value. The transaction secures the future pension payments and benefits for all Scheme members representing a very positive result in a short time frame.”

 Tom Ridley, Senior Deal Manager at Isio, added: “This transaction was executed in good time thanks to the dedication of the Trustee, Company, Rothesay and all their advisers. We are delighted to have supported the Trustee and the Society in delivering on their objectives and protecting the benefits of all Scheme members. It was also pleasing to see such high levels of insurer engagement in a busy market, with over half of all insurers providing a quotation, demonstrating the continued attractiveness of mid-sized schemes who set clear objectives.”

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