Citi and Pension Insurance Corporation Execute Buyout of £1.5 Billion EMI
LONDON -- July 9, 2013
Citi, together with the sponsor and trustee of the EMI Group Pension Fund (the
“Fund”), have concluded the largest ever pension insurance buyout in the UK
with Pension Insurance Corporation (“PIC”), a specialist provider of insurance
solutions for defined benefit pension funds. The transaction covers £1.5
billion of liabilities and 20,000 members.
The transaction enables the trustee to insure all liabilities of the Fund with
PIC, providing certainty to members and all parties involved.
Clive Gilchrist of BESTrustees and Chairman of the trustee company said: “I
have written to the Fund members telling them that their benefits have been
secured in full with PIC; as a trustee, fully securing benefits is the
ultimate goal. An enormous amount of time and effort has been put into this by
all concerned. The outcome demonstrates how worthwhile it has been.”
Swapnil Katkar of Citi’s Pension Solutions team said: “We ran a disciplined
process that allowed the trustee and sponsor to achieve their objectives of
acquiring all risk cover on competitive terms from a leading provider. Working
closely with the trustee board, sponsor representatives, insurers, legal
counsel and actuarial advisors allowed us to conclude the policy acquisition
within five months, ahead of plan, despite the low interest rate environment
and volatile market conditions.”
David Collinson, co-head of Business Origination at Pension Insurance
Corporation, said: “We are proud to have completed this transaction, the
largest ever pension insurance buyout. We worked closely with all parties to
help them move rapidly through the process and to give them price certainty
through an “All Risks” structure.”
Citi was supported by Clifford Chance and Mercer, the Trustee by Premier
Pensions Management, Sacker & Partners and Towers Watson, and PIC by Herbert
About Pension Insurance Corporation
Pension Insurance Corporation (“PIC”) provides tailored pension insurance
buyouts and buy-ins to the trustees and sponsors of UK defined benefit pension
funds. A market leader, PIC brings safety and security to scheme members'
benefits through innovative, bespoke insurance solutions, which include
deferred premiums and the use of company assets as part payment. PIC has
almost £9bn in assets and has insured more than 85,000 pension fund members.
Clients include FTSE 100 companies, multinationals and the public sector. PIC
is authorised by the Prudential Regulation Authority and regulated by the
Financial Conduct Authority and Prudential Regulation Authority (FRN 454345).
For further information please visit www.pensioncorporation.com.
Citi, the leading global bank, has approximately 200 million customer accounts
and does business in more than 160 countries and jurisdictions. Citi provides
consumers, corporations, governments and institutions with a broad range of
financial products and services, including consumer banking and credit,
corporate and investment banking, securities brokerage, transaction services,
and wealth management.
Additional information may be found at www.citigroup.com | Twitter: @Citi |
YouTube: www.youtube.com/citi | Blog: http://blog.citigroup.com | Facebook:
www.facebook.com/citi | LinkedIn: www.linkedin.com/company/citi
Pension Insurance Corporation
Jeremy Apfel, +44 20 7105 2140
Jeffrey French, +44 20 7500-8304
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