Pension Insurance Corporation, a UK-based specialist insurer that provides bulk annuity policies to defined benefit pension schemes, has completed a £155 mn buy-in transaction with the trustee of Vistry’s final salary pension schemes, securing benefits for 1,671 members.
The deal covers three schemes sponsored by Vistry Group: the Bovis Homes Pension Scheme, the Galliford Try Final Salary Pension Scheme, and the Kendall Cross Holdings Limited Pension and Assurance Scheme.
The transaction insures scheme liabilities through a bulk annuity policy issued by PIC.
Vistry operates as a UK-based developer focused on affordable mixed tenure housing. The company positions the transaction as part of its broader financial risk management strategy, removing future pension volatility from its balance sheet while safeguarding member benefits.
- Sarah Leslie, director at ndapt and trustee representative for the schemes, said the transaction reflects close coordination between trustee, sponsor, insurer, and advisers. She said PIC was selected based on its service record and member-focused approach.
- Tim Lawlor, Vistry’s group chief financial officer, said the agreement secures long-term pension promises made to current and former employees and their families. He added that the buy-in materially reduces pension-related balance sheet exposure.
- Jake Stanbridge, origination actuary at PIC, described the transaction as complex due to the involvement of multiple schemes. He said structured coordination with trustees and advisers enabled delivery of a tailored solution providing long-term security.
- Ken Hardman, partner at Lane Clark & Peacock, said the transaction illustrates sponsor and trustee alignment in securing pension liabilities with an insurance provider.
Legal advice for PIC was provided by Herbert Smith Freehills Kramer, while the trustee received counsel from CMS.
According to Beinsure analysts, sustained bulk annuity demand in the UK reflects improved scheme funding levels and continued appetite from insurers with capacity to absorb defined benefit liabilities.
