37PB Pension Ins 24

TIDM37PB

RNS Number : 0591I

Pension Insurance Corporation PLC

31 March 2020

PIC INSURES FURTHER GBP250 MILLION OF WPP

PENSION LIABILITIES

London, 31 March 2020 - Pension Insurance Corporation plc ("PIC"), a specialist insurer of defined benefit pension funds, has concluded a GBP250 million pension insurance buy-in across two pension schemes ("the Schemes"), sponsored by WPP. The transaction, which was signed in December, is the second buy-in agreement between WPP and PIC, following a buy-in of GBP140 million of liabilities across five schemes in February 2018. PIC won the transaction based in part on the customer service provided since the original transaction.

The transaction was led by Mercer who, with separate teams, advised both the Trustee and the Company, with legal advice provided by Sackers and Addleshaw Goddard respectively. PIC was advised by Herbert Smith Freehills.

WPP is the world's largest communications services group. Through its operating companies, the Group provides a comprehensive range of advertising and marketing services including advertising & media investment management; data investment management; public relations & public affairs; branding & identity; healthcare communications; digital, eCommerce and shopper marketing; and specialist communications. The company employs over 200,000 people (including associates and investments) in over 3,000 offices across 112 countries.

Peter Docking of Independent Trustee Limited, the Trustee Chair for the two WPP schemes, said: "I'm pleased that we have successfully completed this buy-in, which brings further security to our pension scheme members. PIC provided us with a tailored risk transfer solution, and I am grateful for their flexibility and dedication in achieving this outcome. I'd also like to thank our advisers, Mercer and Sackers."

Jay Shah, Chief Origination Officer at PIC, said: "This is the second transaction PIC has completed with pension schemes sponsored by WPP, with our outstanding customer service playing a big part in the decision to award this latest scheme to PIC. The specifics of this transaction show that with a creative, flexible approach from all parties, it is possible to secure a positive result with a tailored structure.

"Despite the recent severe market movements following the outbreak of Covid-19 in the UK, we continue to see a healthy pipeline of new business from trustees. Following our equity raise in February 2020, our solvency levels remain above those at end 2019 and our focus on PIC's purpose of paying the pensions of our current and future policyholders puts us in a strong position to deliver for all our stakeholders in the current environment, and play an active, leading role in the pension risk transfer market."

Chris Hawes, Principal at Mercer, said: "We are delighted to have helped WPP over several years reach the position where virtually all their legacy UK defined benefit obligations are now insured. This is an excellent outcome for all parties."

- ends -

Notes to Editors:

   1)   For PIC's response to the Covid-19 outbreak please visit our website: pensioncorporation.com/media/pic-plc-covid-19-update/ 

For further information please contact:

PIC Jeremy Apfel apfel@pensioncorporation.com

Teneo Douglas Campbell douglas.campbell@teneo.com

About Pension Insurance Corporation:

The purpose of PIC is to pay the pensions of its current and future policyholders. PIC provides secure and stable retirement incomes through leading customer service, comprehensive risk management and excellence in asset and liability management. At 31 December 2019, PIC had insured 225,100 pension scheme members and had GBP40.9 billion in financial investments, accumulated through the provision of tailored pension insurance buyouts and buy-ins to the trustees and sponsors of U.K. defined benefit pension schemes. Clients include FTSE 100 companies, multinationals and the public sector. PIC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority (FRN 454345). For further information please visit www.pensioncorporation.com

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