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LCP lead advisor on £1.2bn buy-in between TotalEnergies UK Pension Plan and PIC

Pensions & benefits Pension risk transfer LCP news DB pensions

PIC, a specialist insurer of defined benefit pension schemes, has concluded a second buy-in with the Trustee of the TotalEnergies UK Pension Plan ('the Plan') for £1.2 billion.

The transaction is the largest completed buy-in announced to date this year. It follows the Plan’s first buy-in with PIC for £1.6 billion in 2014. PIC has now insured all £2.8 billion of the Plan’s defined benefit liabilities. The latest buy-in secures the pensions of over 2,000 pensioners and dependants and 3,500 deferred policyholders.

The Plan is sponsored by TotalEnergies ('the Company'), a global integrated energy company that produces and markets energies: oil and biofuels, natural gas and green cases, renewables and electricity. It employs more than 100,000 people and is active in around 120 countries.

Yadu Dashora, Partner at LCP and lead adviser to the Trustee and Company, said: “We are delighted to have helped the joint working group secure another buy-in. Much has changed in the last ten years since the Plan’s first buy-in was concluded. Whilst large transactions are more common now, they usually have their own intricacies – this one had unique structuring requirements and a complex benefit structure reflecting the legacy of the Company’s business. But as ever, a combination of good preparation and close collaboration between all parties, meant we were able to overcome these challenges and negotiate this sizeable transaction with PIC, achieving a really attractive outcome for the Plan.”

Rob White, Chair of the Plan, said: “Securing the benefits for our members has been the aim of the Trustee for many years. We are pleased to have reached this milestone by extending our existing relationship with PIC. I would like to thank TotalEnergies, PIC, and our advisers for their collaborative and flexible approach in what was a complex and challenging transaction.”

Tristan Walker-Buckton, Co-Head of Origination at PIC, said: “It has been a pleasure working with the Plan and its advisers on securing this complex deal. Repeat transactions such as this rely on the excellent relationships fostered, in this case over a decade ago, with the aid of LCP. I would expect to see more schemes in the market complete repeat transactions, such as this, when pricing objectives have been met.”

LCP acted as lead transaction adviser for the Trustee and Company. The Trustees received legal advice from Sackers and the Company received legal advice from CMS. PIC was advised by Addleshaw Goddard.

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