MMC pension fund’s Sedgwick section completes £1.9bn buy-in with Standard Life

The Sedgwick Section of the MMC UK Pension Fund has completed a £1.9bn buy-in with Standard Life, covering the benefits of all members of this section of the scheme.

The buy-in secured retirement benefits for around 6,500 members who were previously employed by Sedgwick Group, acquired by Marsh McLennan in 1998.

It also included novation of the section’s three existing longevity swaps with Canada Life Re, Munich Re, and The Prudential Insurance Company of America (PICA) from the Guernsey-based insurance captive vehicle, Mercer ICC Limited.

Mercer, a business of Marsh McLennan, acted as lead broker on the transaction, although separate teams advised the trustee and Marsh McLennanan. This included risk transfer, actuarial, investment, insurer financial strength, and post-transaction management advice.

In addition to this, legal advice was provided to the trustee by Linklaters and to Marsh McLennan by Herbert Smith Freehills Kramer, while Eversheds Sutherland LLP advised Standard Life.

Trustee chairman, Bruce Bigby, suggested that the buy-in will help the trustee to continue safeguarding the financial security of members' benefits, highlighting the deal as the "natural next step and a significant milestone for the Sedgwick Section".

"The trustee and Marsh McLennan commissioned a full review of the bulk annuity market and selected Standard Life as the overall most attractive immediate and long-term partner for the Fund’s Sedgwick Section liabilities," he stated.

Standard Life director of defined benefit (DB) solutions, Kieran Mistry, said: "Executing this complex transaction required a highly collaborative approach between all parties, leveraging the strong relationships between Mercer, Standard Life and the reinsurers.

"We are grateful for the commitment and teamwork shown by the trustee, Marsh McLennan, and their advisers throughout the process, and the support of the teams at Canada Life Re, Munich Re, and PICA."

Mercer UK Investments and retirement leader, Phil Parkinson, added: “We are delighted to have led this transaction, utilising our extensive and varied risk transfer capabilities across two separate risk transfer teams working on behalf of the trustee and Marsh McLennan.

"Both teams collaborated closely with Standard Life, the reinsurers and the various legal advisers to optimise pricing and terms, maximise efficiency and minimise risk for both the Trustee and Marsh McLennan."



Share Story:

Recent Stories


FREE E-NEWS SIGN UP

Subscribe to our newsletter to receive breaking news and other industry announcements by email.

  Please tick here to confirm you are happy to receive third party promotions from carefully selected partners.


The new episode of The Mortgage Insider podcast, out now
Regional housing markets now matter more than ever. While London and the Southeast still tend to dominate the headlines from a house price and affordability perspective, much of the growth in rental yields and buyer demand is coming from other parts of the UK.

In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.

Air and the role of later-life lending
Content editor at MoneyAge, Dan McGrath, spoke to the chief executive officer at Air, Will Hale, about the later-life lending industry, the importance of tailored advice and how technology and obligations have shaped the sector.


Helping the credit challenged get mortgage ready
A rising number of borrowers are finding it harder to access mortgages due to being credit challenged - whether that’s from historic debts, a county court judgment, or having little to no credit history.

In the latest episode of the Mortgage Insider podcast, Phil Spencer is joined by Eloise Hall, Head of National Accounts at Kensington Mortgages, and Alastair Douglas, CEO of TotallyMoney.

The future of the bridging industry and the Autumn Budget
MoneyAge content editor, Dan McGrath, is joined by head of marketing at Black & White Bridging, Matt Horton, to discuss the bridging industry, the impact of the Autumn Budget and what the future holds for the sector.