Consultancy Services


Buy-inSure Process Framework

Buy-inSure Process Framework

Buy-inSure Brochure

Buy-inSure - The solution to your £5m–£60m pensioner buy-in transactions

Lets Talk - Buy-inSure

Lets Talk - Buy-inSure

Contact

Tiziana Perrella FIA Tiziana Perrella FIA
Martyn Phillips FIA Martyn Phillips FIA
Ruth Ward Ruth Ward
David Barratt David Barratt

Buy-inSure

In recent years, the buy-in market has significantly developed and matured. With the total annual value of buy-in and buyout transactions amounting to between £4bn and £5bn for 2011 and 2012.

However, the significant value of deals completed each year possibly indicates an efficient marketplace with most deals that come to market completing. Reality is very far from this. In fact, it is estimated that less than 1 in 5 deals that comes to market for buy-in quotations actually ends up transacting.

Some of the reasons given as to why deals do not reach a positive conclusion for pension scheme trustees and sponsors include:

  • The process took far too long, resulting in missing a window of opportunity
  • Clear plans, including framing decision criteria, were not put in place early in the process
  • There was insufficient interest from the insurers (only one or two insurers were willing to quote)
  • The terms the trustees and sponsor wanted within the buy-in contract were only available to much larger deals (ie for pensioner buy-ins of £100m or more - most transactions are for much smaller values)
  • When final guaranteed prices were provided, the markets had moved away from an affordable level, which meant we ended up walking away

We have a long and well established reputation for successful completion of pensioner buy-in transactions for our clients. We have completed well over 100 buy-in and buyout transactions (with c20 deals completed in 2012), including deals below £1m through to deals involving in excess of £500m.

Through this considerable experience, we have developed a new breed of pensioner buy-in solutions, called Buy-inSure, which looks to address many of the historical challenges that have resulted in deals not completing. Buy-inSure has been designed for pensioner buy-ins involving between £5m and £60m of pensioner liabilities. The result is a proposition that offers trustees and sponsors:

  • A robust and clearly defined process
  • Enhanced insurer engagement
  • Condensed transaction timelines
  • Enhanced contractual terms
  • Fixed advisory fees for the broking exercise
  • Optional extras, including:
    • Pre-packaged, cost effective legal review and opinion
    • Data cleanse service
    • Compare against an "Underwritten Bulk Annuity" quotation (available later in 2013)
    • On-going monitoring against triggers

Click below to watch the video for Buy-inSure Part 1 - What and Why

Click below to watch the video for Buy-inSure Part 2 - The Process

Click below to watch the video for Buy-inSure Part 3 - the Optional Extras

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