Smiths Group extends pension de-risking

RNS Number : 1325U

Smiths Group PLC

20 October 2017

 

News Release

London, 20 October 2017

For immediate release

Smiths Group extends pension de-risking with £207m buy-in

Smiths Group plc ("Smiths" or "the Company") announces today that the Trustee of the Smiths Industries Pension Scheme (the "Scheme") has entered into a bulk annuity buy-in agreement with Canada Life.

Demonstrating the Company's commitment to de-risking its pension liabilities, the buy-in policy covers liabilities totalling £207m relating to over 2,000 legacy Scheme pensioners and dependants. Through a series of buy-ins, around £0.5bn of the Smiths Industries Pension Scheme liabilities has now been insured.  Across Smiths Group's two main UK schemes around £1.5bn of the liabilities has now been insured.

Bill Seeger, Chief Financial Officer, said:

"Our sustained focus, over many years, on de-risking the Company's pension liabilities has reduced volatility and has led to significantly lower funding obligations going forward - freeing up capital for Smiths to invest in growth opportunities.  Over 95% of the Group's total pension liabilities are hedged through our liability driven investment strategy."

Nicholas Godden, Chair of the Smiths Industries Pension Scheme Trustee, said:

"This is the first buy-in we have completed with Canada Life as part of our long-term de-risking strategy. We have made considerable strides to completely de-risk the Scheme and this remains our long-term aim."

END

Contact details

Investor enquiries

Jemma Spalton, Smiths Group

[phone]

[phone]

[e-mail]

Marion Le Bot, Smiths Group
[phone]
[phone]
[e-mail]

Media enquiries

Andrew Lorenz, FTI Consulting
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[phone]

[e-mail]

Deborah Scott, FTI Consulting
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[phone]
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About Smiths Group

Smiths Group is a global technology company listed on the London Stock Exchange (SMIN) and operates a sponsored level one ADR programme (SMGZY). A world leader in the practical application of advanced technologies, Smiths Group delivers products and services for the threat & contraband detection, medical devices, energy and communications markets worldwide. Smiths Group employs more than 22,000 people in over 50 countries. For more information visit www.smiths.com.

 

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