NSK Pension Scheme completes £309m buy-in with M&G

The NSK Pension Scheme has completed a £309m buy-in with M&G, securing the defined benefit (DB) pension liabilities for around 3,700 members of NSK’s UK pension scheme.

Mercer acted as the lead adviser for NSK Europe Limited on the transaction, with legal advice provided to the sponsor by Shoosmiths.

The trustees were advised by Aon and CMS while Hogan Lovells provided legal advice to M&G.

The deal, which was also included in M&G's full year results in March, used M&G’s subsidiary offering life and pensions solutions, the Prudential Assurance Company Limited, as the insuring entity.

It marks the third buy-in deal completed by M&G since it re-entered the bulk annuity market in 2023, with total new business totalling around £930m.

M&G said there was a strong alignment of interest between the parties involved to complete this transaction within the first quarter of the year, with an efficient and collaborative process from all parties involved "critical" in hitting this deadline.

Mercer risk transfer principal, Kevin Richardson, also said that the collaborative approach and aligned objectives between the parties was “absolutely vital”, while Aon senior consultant, Chris Dunford, hailed the close collaboration as “key” to the successful outcome, as well as the flexibility and responsiveness shown by all involved.

NSK Europe CFO, Mark Trivett, highlighted the buy-in policy as demonstration of the group's commitment to the scheme and members’ long-term security.

"This transaction is a major milestone in our collaborative approach with the trustee to reduce risk over the years," he continued.

"We would like to acknowledge the hard work of M&G, the trustee and all the advisers for their effective teamwork in completing the transaction.”

NSK Pension Trustee Limited chair, Steve Metcalfe, added: “Insuring our members' benefits has been a key aim of the trustee and company, providing long-term security.

“To achieve this key aim within the required timescales was challenging but the trustee were expertly supported thanks to Aon and CMS’s deep knowledge of the insurance market, allied with a collaborative approach across all parties. The trustee is delighted with the outcome.”

M&G CEO life insurance, Clive Bolton, also emphasised the importance of strong collaboration between the parties involved, adding: "We are very pleased to have worked with the both the sponsor and trustee to achieve this significant de-risking milestone.

“Since we announced our re-entry into this market last year, we have selectively participated in deals, having now written close to almost £1bn of business. We are committed to continuing to leverage our differentiated business model to help our clients achieve their goals and deliver sustainable growth.”

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