The AvestaPolarit Pension Scheme has completed a £390m full scheme buy-in with Rothesay, securing the defined benefit (DB) liabilities for 426 pensioners and 500 deferred members.

The deal is expected to move to a buyout in future and completes the scheme’s de-risking journey following an initial pensioner buy-in in 2020.

Aon was the lead broker on the transaction, acting for both the trustee and the sponsor, Outokumpu Stainless, which also received additional strategic advice from Cardano.

Legal advice, meanwhile, was provided to the trustee by DLA Piper and to Rothesay by Linklaters.

Outokumpu Stainless vice president – business controlling, David Scaife, said that the sponsor was “delighted to have agreed this transaction with Rothesay and to have secured the pensions of our scheme’s members for the future”.

“The execution process was well-managed and we are confident Rothesay will provide long-term security for our scheme members,” he said.

ITS Limited chair of trustees, Chris Martin, added: “We are delighted to have agreed this full scheme bulk annuity for the members of the AvestaPolarit Pension Scheme.

“Rothesay’s flexibility was invaluable in completing the transaction on attractive terms for our members. As a specialist insurer of pensions, Rothesay is an ideal partner and scheme members can be confident that their future payments are securely protected."

Adding to this, Rothesay business development, Rachel Bradshaw, suggested that it was "testament to the scheme trustee’s preparation and its experienced advisers that it only took ten weeks from issuing the request for quotation to signing this deal".

“Rothesay’s purpose-built, sophisticated technology allowed us to transact at speed and achieve long-term security for all policyholders as soon as possible,” she continued. "The journey to buyout remains the objective for many pension scheme trustees and we expect a strong year of de-risking in 2022."

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