Vesuvius plc Completes Full Pension Scheme Buy-In

RNS Number : 4071W

Vesuvius plc

21 December 2021

 

21 December 2021

VESUVIUS PLC COMPLETES FULL PENSION SCHEME BUY-IN WITH PENSION INSURANCE CORPORATION

Vesuvius plc ("Vesuvius" or "the Company"), a leading metal flow engineering company, today announces that the Trustee of the Vesuvius Pension Plan ("the UK Plan") has signed a further pension insurance buy-in agreement with Pension Insurance Corporation plc ("PIC"), a leading provider of pension insurance solutions to defined benefit pension funds. This final buy-in secures an insurance asset from PIC that matches the remaining pension liabilities of the UK Plan, with the result that the Company no longer bears any investment, longevity, interest rate or inflation risks in respect of the UK Plan.

This transaction, which is the seventh pension insurance buy-in arrangement that the UK Plan has arranged with PIC, the first of which was secured in July 2012, covers £305m of liabilities. The insurance policies with PIC now cover over £600m of liabilities, and all benefits in the UK Plan are now insured with PIC.

The Trustees were advised by Aon, Linklaters and Premier Pensions, Vesuvius by LCP and PIC were advised by CMS.

Guy Young, Chief Financial Officer of Vesuvius plc, said:

"This latest buy-in agreement, which results in all of the UK Plan being covered by buy-in agreements with PIC, represents further progress in de-risking the UK Plan whilst protecting benefits. We have reached this positive milestone thanks to the efforts and resolve of all stakeholders but particularly the Trustee and our advisors."

Allan Course, Chairman of the Trustee, said:

"We are delighted to have arranged the recent buy-in, which means all benefits for the UK Plan are now secured with PIC. Working closely with Vesuvius to manage a gradual de-risking of the plan over the last few years, and our approach of securing multiple buy-ins, which we developed with our advisors Aon, has enabled us to remove volatility from the UK Plan and manage the pension plan risk effectively."

John Baines, partner in Aon's Risk Settlement Group said:

"After advising the Trustee on the original transaction in 2012, we have continued to work with the Trustee along their de-risking journey. This series of transactions is a great example of why a risk settlement strategy needs to be developed on a bespoke basis, with the Scheme benefiting from a pro-active approach to remove as much risk as affordable through a series of buy-in transactions".  

Tristan Walker-Buckton, Head of Pricing, at Pension Insurance Corporation, said:

"We are proud to have been able to help the Trustee secure the pensions for all members of the UK Plan through a series of buy-in transactions. We believe that by developing their approach of de-risking through buy-in transactions, the Trustee has been forward thinking in managing pension scheme risk".

Notes to Editors:

For further information please contact:

Vesuvius plc: 

Guy Young, Chief Financial Officer Euan Drysdale, Group Head of Corporate Finance

[phone] [phone]

Aon:

Colin Mayes [e-mail]

[phone]

Pension Corporation:

Jeremy Apfel [e-mail]

[phone]

About Vesuvius

Vesuvius is a global leader in molten metal flow engineering and technology principally serving the steel and foundry industries.

We develop innovative and customised solutions, often used in extremely demanding industrial environments, which enable our customers to improve their manufacturing processes, enhance product quality and reduce costs. These include flow control solutions, advanced refractories and other consumable products and increasingly, related technical services including data capture.

We have a worldwide presence. We serve our customers through a network of low-cost manufacturing plants located close to their own facilities, and embed within their operations our industry experts, who are all supported by our global technology centres.

Our core competitive strengths are our market and technology leadership, strong customer relationships, well established presence in developing markets and our global reach, all of which facilitate the expansion of our addressable markets.

Our ultimate goal is to create value for our customers, and to deliver sustainable, profitable growth for our shareholders giving a superior return on their investment whilst providing each of our employees with a safe workplace where he or she is recognised, developed and properly rewarded.

About Aon

Aon plc  (NYSE: AON) exists to shape decisions for the better - to protect and enrich the lives of people around the world. Our colleagues provide our clients in over 120 countries with advice and solutions that give them the clarity and confidence to make better decisions to protect and grow their business.

Follow Aon on  Twitter  and  LinkedIn . Stay up-to-date by visiting the  Aon Newsroom  and sign up for News Alerts  here .

About Pension Insurance Corporation

The purpose of PIC is to pay the pensions of its current and future policyholders. PIC provides secure and stable retirement incomes through leading customer service, comprehensive risk management and excellence in asset and liability management. At half-year 2021, PIC had insured 270,800 pension scheme members and had £47.6 billion in financial investments, accumulated through the provision of tailored pension insurance buyouts and buy-ins to the trustees and sponsors of U.K. defined benefit pension schemes. 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

Vesuvius plc, 165 Fleet Street, London EC4A 2AE

Registered in England and Wales No. 8217766

LEI: 213800ORZ521W585SY02

www.vesuvius.com

 

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