LONDON, 11 December 2014 - Aon Hewitt, the global talent, retirement and health solutions business of Aon plc (NYSE:AON), has advised on the buyout of the MacDerrmid Canning Pension Scheme by Pension Insurance Corporation, a specialist insurer of defined benefit pension schemes. Eversheds LLP, the international law firm, advised on the legal aspects of the deal.
MacDermid is a global speciality chemicals company, serving the electronics, industrial, offshore and printing industries, and is part of Platform Specialty Products Corporation. Its UK pension scheme has 670 members and the bulk annuity amounts to £50 million.
Dominic Grimley, bulk annuity lead for Aon Hewitt’s Risk Settlement Group, said:
“In early 2012 the MacDermid scheme trustees adopted Aon Hewitt’s fiduciary management service, including the new Implemented Annuities service. Combined with continuing generous financial support from the sponsoring company, this quickly achieved the returns required to make up the buyout cost. It also contained risk exposure more tightly than traditional asset management approaches, and then provided prompt closure of growth asset exposure to stabilise the funding position.”
Once the trustees and sponsoring company had decided to proceed to buyout, Aon Hewitt scheduled all actions needed to achieve this and ran a competitive broking process, after which Pension Insurance Corporation was appointed, based on competitive terms and due diligence advice. The annuity contract was signed a week after all decision-makers had agreed the transaction. The process was enabled by the use of Aon Hewitt’s streamlined broking, including enhanced pre-negotiated contracts agreed with Eversheds LLP.
Dominic Grimley continued:
“Over the past year, there have seen opportunities for schemes to lock in substantial asset returns and to secure attractive annuity terms – but only if they had the right tools to move nimbly. The MacDermid scheme was able to secure all the benefits faster than expected, which highlights the advantages of combining fiduciary management with efficient annuity broking under Implemented Annuities.”
Jack Hulme, chair of the Trustee board of the MacDermid Canning Pension Scheme, said:
“The returns achieved and quickly locked into were a key point in the history of the scheme, and the Aon Hewitt team has tightly managed us through the steps needed to reach our goal of member protection. We gained clarity and direction which enabled us to be confident that we had made the correct and well-informed decision to secure our members’ future with Pension Insurance Corporation.”
Uzma Nazir, Actuary at Pension Insurance Corporation, said:
“We are pleased to have been selected. An increasing number of schemes are taking positive de-risking actions, as the trustee board here has done, and reaching their target of full buyout.”
Notes to Editors
About Aon Hewitt
Aon Hewitt empowers organisations and individuals to secure a better future through innovative talent, retirement and health solutions. We advise, design and execute a wide range of solutions that enable clients to cultivate talent to drive organisational and personal performance and growth, navigate risk while providing new levels of financial security, and redefine health solutions for greater choice, affordability and wellness. Aon Hewitt is the global leader in human resource solutions, with over 30,000 professionals in 90 countries serving more than 20,000 clients worldwide. For more information on Aon Hewitt, please visit www.aonhewitt.com
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Aon plc (NYSE:AON) is the leading global provider of risk management, insurance and reinsurance brokerage, and human resources solutions and outsourcing services. Through its more than 66,000 colleagues worldwide, Aon unites to empower results for clients in over 120 countries via innovative and effective risk and people solutions and through industry-leading global resources and technical expertise. Aon has been named repeatedly as the world’s best broker, best insurance intermediary, best reinsurance intermediary, best captives manager, and best employee benefits consulting firm by multiple industry sources. Visit aon.com for more information on Aon and aon.com/manchesterunited to learn about Aon’s global partnership with Manchester United.
About Pension Insurance Corporation
Pension Insurance Corporation (“PIC”) provides tailored pension insurance buyouts and buy-ins to the trustees and sponsors of UK defined benefit pension funds. PIC brings safety and security to scheme members' benefits through innovative, bespoke insurance solutions, which include deferred premiums and the use of company assets as part payment. PIC has more than £12bn in assets and has insured 100,000 pension fund members. Clients include FTSE 100 companies, multinationals and the public sector. PIC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority (FRN 454345). For further information please visit www.pensioncorporation.com