Global brands distributor Barloworld’s UK pension scheme has secured a £54m pensioner buy-in arrangement with Scottish Widows.

The pensioner buy-in covered a tranche of the scheme’s pensioner liability, and is the continuation of the scheme’s de-risking strategy, following a previous buy-in completed in 2014. The trustees were advised by KPMG.

Commenting on the deal, the scheme’s chairman of trustees Andrew Bannister said: "This buy-in is part of our long-term strategy to de-risk our pensioner liabilities and I am very pleased that we have been able to complete this arrangement with Scottish Widows following a competitive process run by KPMG. The Scottish Widows’ team has been flexible and responsive to our needs in helping us to complete the buy-in on attractive terms."

According to KPMG senior manager James Staveley-Wadham, the trustees of the scheme had, with KPMG, continued to monitor pricing and at the start of 2016 decided to proceed with a second buy-in.

“Having already transacted once, the market reacted favourably to the second tranche and we were able to secure competitive terms with Scottish Widows. The experience of the first buy-in was put to good use, with the trustees and KPMG being able to agree contractual terms and execute quickly,” he explained.

The trustees’ proactivity, along with the preparatory work they had done with their advisers, meant they were able to conclude the transaction in a shortened timescale, Scottish Widows, head of origination and structuring, bulk annuities, Mike Edwards added.

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