Pension Insurance Corporation, an insurer of defined benefit pension funds, has concluded a circa £2.4bn pension insurance buyout with the trustees of the Philips UK Pension Fund.

The transaction covers the pension benefits of around 26,000 UK pension scheme members. A key feature of the transaction is simultaneous reinsurance of the longevity risk by PIC with Hannover Re, including non-retired members.

Philips is a diversified health and well-being company, focused on improving people’s lives through meaningful innovation in the areas of healthcare, consumer lifestyle and lighting. It employs approximately 106,000 employees with sales and services in more than 100 countries.

“Increasingly, we are seeing multi-national organisations successfully settling their pension obligations through pension insurance arrangements such as this,” PIC head of origination Jay Shah said.

“It is becoming part and parcel of modern commercial thinking. This has been a very successful year so far for PIC with £3.5bn of new business written to date, taking our assets under management to more than £16bn.”

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