The Cable and Wireless Superannuation Fund has agreed a £340m buy-in with Legal & General (L&G), securing the benefits of approximately 1,800 retirees and deferred members.

This transaction was the scheme’s third and final transaction with L&G, following buy-ins in 2017 and 2019, with all scheme members now insured.

The scheme’s de-risking process began in 2008 when it completed its first buy-in with Prudential in what was the first £1bn buy-in transaction in the UK.

Its sponsoring employer, Cable and Wireless Limited, is part of telecommunications services provider Liberty Latin America.

The scheme is a long-standing client of Legal & General Investment Management (LGIM).

L&G stated that, with its support, the scheme trustee was able to react to changing market conditions and complete the deal at an “opportune time”.

The insurer provided a bespoke solution to secure a “complex, multi-currency benefit structure”, which included a price lock to the value of the scheme’s LGIM assets.

LCP advised the scheme trustee throughout the transaction, while Hogan Lovells International provided the trustee with legal advice.

Clifford Chance acted as the legal adviser to L&G.

“This is a further important step in reducing the exposure of the fund to investment and other risks such as changes in life expectancy,” commented Cable and Wireless Superannuation Fund trustee director, Dean Johnson.

“With all benefits payable from the fund now matched by insurance contracts members can take great comfort in the security of their pensions in retirement.”

Liberty Latin America treasurer, Matt Read, said the firm was delighted the scheme had reached the stage where all member benefits were insured.

“This latest transaction leaves the fund in an incredibly strong position and is a great outcome for members of the fund and the sponsor,” he said.

L&G Retirement Institutional director, Kai Hoffmann, added: “We are pleased to have built on our long relationship with the Cable and Wireless Superannuation Fund and support this next step of its de-risking journey.

“The trustee and its advisers ran a very efficient process, which allowed the fund to react to favourable market movements and implement an efficient solution for its complex benefits.”

LCP partner, Ben Adams, concluded: “It has been a pleasure to work with the trustee and sponsor in such a collaborative way and to reach this excellent outcome for members.

"Market conditions have been changing rapidly in recent months and there were a number of complexities in this transaction including multi-currency benefits.

"It has taken a great amount of effort and focus from all parties to achieve this and we are delighted to have played our part.”

Share Story: