U.K.-based Pension Insurance Corp. PLC will insure £425 million of pension liabilities connected to the Somerfield Pension Scheme after completing a pension insurance buy-in with the scheme's trustee.
The scheme is one of several sponsored by the Co-operative Group, in aggregate with about £13 billion of liabilities. The trustee will continue paying the scheme's pensioners, but will receive regular payments from Pension Insurance to fund these payments.
Aon served as lead transaction adviser to the trustee. Eversheds Sutherland provided legal advice, while Mercer gave investment advice to the trustee. Herbert Smith Freehills advised Pension Insurance on the transaction.