LCP advises on £1.8bn Just Group transaction to secure all pension benefits of the G4S Pension Scheme

Just Group has completed its largest insurance de-risking transaction to date: a £1.8 billion full buy-in with the Trustee of the G4S Pension Scheme (the 'Scheme'), covering the benefits of around 22,500 members. The Trustee selected Just Group following a highly competitive and rigorous selection process. This is the largest publicly announced deal in the Bulk Purchase Annuity market this year.

The Scheme’s funding level had improved in recent years, enabling the Trustee and Company to accelerate their plans to de-risk the Scheme. Both parties jointly approached the market and worked collaboratively to secure an attractive outcome for members.

A key focus for the Trustee was to enhance the long-term security of members’ benefits and ensure good member experience. The Trustee undertook a bespoke, careful due diligence process which resulted in the selection of Just.

The Trustee was advised throughout the process by Aon. LCP provided advice to the Company. Legal advice was provided by Gowling WLG to the Trustee, by Freshfields to the Company and by CMS to Just Group. Cardano acted as covenant adviser and fiduciary manager.

Ashley Almanza, Executive Chairman, G4S: “Supporting the members of the pension schemes has always been a key priority for G4S Limited and the company has paid very material contributions into the schemes, on behalf of members, over many years. It is extremely pleasing to have worked in close collaboration with the Trustees to agree a major buy-in that secures the position of the pension scheme members.”

David Salter, Partner, LCP:
“It has been a genuine pleasure leading on this transaction. Against the backdrop of a busy market with large schemes vying for attention, it was especially pleasing to get high levels of insurer engagement and an attractive overall package for both G4S Limited and the Trustee. The ability of Just to put forward a comprehensive proposition for this scheme represents another positive step forward for the market.”

Pretty Sagoo, Managing Director, Defined Benefit Solutions, Just Group:
“We are delighted to have been selected by the Trustee to secure the Scheme members’ benefits, and we look forward to providing a brilliant member experience for years to come. The transaction was the culmination of a rigorous selection process run by Aon and LCP, and demonstrates our ability to support larger schemes in their derisking journeys. There is a vibrant insurance de-risking market for schemes of all sizes and Just are delivering outstanding service to small schemes, large schemes and everything in between.”