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The ICI Pension Fund completed two buy-ins in quick succession in September 390m with Legal & General and 590m with Scottish Widows proving the value of having umbrella contracts in place to take advantage of favourable terms. The Fund has completed five buy-ins since March insuring over 2.5bn liabilities over this period.
The September transactions totaling nearly 1bn bring the total liabilities insured since 2013 to over 8bn across 11 transactions or around 75% of the Funds liabilities. LCP has acted as lead adviser on all 11 transactions. The Fund has insured more than twice the amount of liabilities through buy-ins as any other UK pension fund.
LCP conservatively estimates the Fund has saved over 100m in the past two years through insuring liabilities over time with a panel of insurers through umbrella contracts. This approach has a number of advantages. The insurers know the Fund can transact quickly if...