The Pensions Insurance Corporation (PIC), a specialist insurer of defined benefit pension schemes, has agreed a £230m acquisition agreement with the trustees of the Peel Port Final Salary Pension Scheme.
As one of the UK’s largest port operators, Peel Port Group handles more than 70 million tonnes of global cargo for its customers each year.
The deal covers approximately 2,000 members of Peel Ports Group companies, including Mersey Terminals Ltd, Shelness Port Ltd, Manchester Canal Ltd, Clydeport Ltd and Clydeport Operations Ltd.
Matt Richards, PIC’s head of origination structures, said: “Strengthening relationships with companies, trustees and sponsors we have previously worked with is a core part of our PIC strategy and this transaction provides a valuable opportunity to deepen our partnership with Peel Ports Group.
“We are pleased to have submitted a proposal that is consistent with the trustees’ objectives and supports their long-term objectives. PIC invests a lot of time and effort in ensuring we deliver the right outcome for policyholders and we are proud that our focus on customer service was key in selecting this transaction.”
This is the second time PIC and Peel Port Group have worked together to secure members’ pensions. In 2017, the PIC completed a £725 million acquisition with the trustees of the Former Registered Dockers Pension Fund, a multi-employer pension scheme covering dockworkers and former dockworkers working in a number of UK ports, including Mersey Docks and Ports Ltd.
Amanda Willis, chair of the scheme’s Board of Trustees and group treasurer of Peel Port Group, said: “We are pleased to have achieved our long-term objective of fully supporting the scheme, increasing the financial security of member benefits while reducing pension-related risks for Peel Port Group.
“PIC impressed us early in the process with a compelling proposal and clear commitment to the deal. Its financial strength and reputation for delivering high quality service to pension scheme members were key factors in our decision and ultimately led to our selection of PIC as our insurance partner. Peel Ports Group already had a positive experience with PIC following the purchase of past employees of the former Registered Dockers’ Pension Fund benefit in 2017 and we are delighted to be working together again on such an important transaction.”
LCP’s Ken Hardman, who advised the trustees on the transaction, said: “This transaction once again demonstrates the value of joint action between trustees and scheme sponsors, with all parties setting clear objectives at the start of the process and working closely together to achieve a successful outcome. We are delighted to have supported the trustees in achieving such a positive outcome for their members.”
