The pension scheme sponsored by Batt Cables has completed a £34m buy-in with Just Group, covering 193 deferred members and 71 pensioners.

The deal between the insurer and the cable supplier and distribution company was completed in December 2022.

It was structured to enable full de-risking upfront, with part of the premium deferred to provide required flexibility to the sponsor.

Bulk annuity and consolidator advisory business K3 Advisory, in partnership with actuary and consultant Cartwright, supported the trustees in completing the deal.

Commenting on the buy-in, Batt Cables chair of trustees, Peter Holm, said: “Thanks to Cartwright and K3’s initiative and attention to detail we were able to move quickly and secure the best outcome for all our members and the company.

“We have been a very happy Cartwright client for many years and so it is with some sadness that the end of the scheme is in sight.

“However, we couldn’t be happier that all members’ benefits will be secured in full at an attractive price for the company.”

Just Group head of DB sales, Pete Jennings, said the insurer was pleased to have secured the benefits of scheme members, and to have met the needs of both the trustees and scheme sponsor.

“This transaction took place during a very busy year end period and shows that while the market is vibrant Just remain open to schemes of all sizes,” he continued.

“It’s been great to work with K3 and Cartwright and we’re looking forward to continuing to work with the trustees during the onboarding phase.”

K3 Advisory managing director, Adam Davis, added: “The insurance market is crowded and even more so for small schemes, but as specialists in this area we know how to get things done.

“In this deal, we worked together with Cartwright to identify and seize the opportunity as it arose, transacted quickly, and secured the members’ benefits, while agreeing a flexible deal structure that allowed the sponsor to provide the funding required over time.”

Cartwright director of investment consulting, Sam Roberts, said that the firm supported the trustees in navigating the “difficult and volatile” gilt markets in autumn 2022.

“This ensured that as the markets settled down towards the end of the year we were able to work with K3 to transact in a timely manner with a favourable outcome for everyone,” he stated.

“We were also pleased to see a deferred premium structure used, which is likely to be attractive to many other schemes where the remaining agreed recovery plan contributions are sufficient to achieve immediate buyout.”


This article first appeared on our sister title, Pensions Age.

Share Story: