LCP advises on £90m bulk annuity between Just and the Hammerson Group Management Limited Pension and Life Assurance Scheme

LCP has advised on a £90m bulk purchase annuity transaction between Just and the Hammerson Group Management Limited Pension and Life Assurance Scheme. The transaction was completed in December 2022 through LCP’s streamlined buy-in service and has led to Just insuring pensions for all members of the Scheme.

Hammerson worked closely with the Trustees of the Scheme to move it from a £100m deficit three years ago to a fully insured basis. This included supporting de-risking the Scheme’s investment strategy, providing a corporate guarantee and injecting £55m into the Scheme between 2020 and 2022. The new agreement with Just removes the pension risk from Hammerson’s balance sheet whilst providing past and present members with certainty in their future pension with no change in the amount of their benefits or the way in which they are paid.

Tim Gilbert, Partner at LCP, said: “Helping Hammerson and the Trustees complete this transaction was the latest step in our longstanding relationship. The Scheme was well prepared, and LCP’s streamlined buy-in service efficiently took advantage of attractive pricing, with just two weeks between the selection of Just and the execution of the contract. In an increasingly busy market, efficient execution is key to helping smaller schemes take advantage of attractive pricing.”

Nicholas Hardie, Chair of the Trustee Board, said: “We are delighted to have concluded this agreement with the additional security it brings to members. Last year, LCP helped us identify the opportunity to fully insure members’ benefits, and I am delighted that we were able to transact decisively and swiftly. LCP gave us confidence that we were able to capture the improvement in the position through an efficient process with robust contractual terms.”

Peter Jennings, Head of DB (Defined Benefit) Sales at Just, said: “We are delighted to have been selected by the Trustee as their preferred insurer. There is a vibrant consolidation market for schemes of all sizes, and 2023 is going to be a very busy year. So, it helps having well-presented transactions with an efficient process, which the LCP streamlined buy-in service always delivers.”