The trustee of the Littlewoods Pensions Scheme has completed a £880m buy-in with Scottish Widows, it has been announced.
The transaction, which is Scottish Widows' largest bulk annuity transaction to date, covers the risks associated with c.60 per cent of the liabilities in the scheme. It will provide a monthly income to the trustee to meet pensions payable to nearly 7,000 scheme members.
The Littlewoods scheme has already enjoyed a strong surplus funding position and has been able to hedge its interest rate and inflation exposures. Pricing negotiated with Scottish Widows will enable the scheme to improve its funding position further and reduce risks.
The trustee was advised by LCP on planning, structuring and negotiation of the transaction, and ARC Pensions Law provided legal advice. Scottish Widows was advised by Eversheds Sutherland.
Littlewoods Pensions Scheme chairman of trustees Colin Thwaite said: "We are delighted to have completed this buy-in transaction with Scottish Widows, covering well over half of our liabilities. The attractive pricing of the transaction has closed the gap to being fully funded and further reduces the risk profile of our investments to meet members’ pensions.”
Scottish Widows bulk annuity director Emma Watkins added: "We are proud to have been chosen by the trustee for this significant buy-in. Scottish Widows, the trustee and their advisors have worked closely together to ensure the buy-in was implemented smoothly. Shop Direct is an important client of Scottish Widows’ parent Lloyds Banking Group which provides commercial banking services to the company. We are pleased to strengthen an existing relationship through this arrangement."
LCP partner David Stewart also commented: " We’re delighted to have helped the Littlewoods’ trustee achieve excellent value by articulating clear transaction objectives to the insurers and executing quickly once these objectives were met. The pricing negotiated surpassed the trustee’s original expectations and moves them significantly forwards towards full de-risking.”
Latest News
-
Adviser study reveals clients cutting pension payments for IHT purposes
-
HSBC UK profits fall 6% in Q3
-
Three in five landlords don’t trust Govt to deliver leasehold reform
-
Fifth of HNWIs unaware of private pension IHT changes
-
Savers keeping cash in low interest accounts, study shows
-
NatWest Q3 profits increase 35%
NEW BUILD IN FOCUS - NEW EPISODE OF THE MORTGAGE INSIDER PODCAST, OUT NOW
Figures from the National House-Building Council saw Q1 2025 register a 36% increase in new homes built across the UK compared with the same period last year, representing a striking development for the first-time buyer market. But with the higher cost of building, ongoing planning challenges and new and changing regulations, how sustainable is this growth? And what does it mean for brokers?
The role of the bridging market and technology usage in the industry
Content editor, Dan McGrath, sat down with chief operating officer at Black & White Bridging, Damien Druce, and head of development finance at Empire Global Finance, Pete Williams, to explore the role of the bridging sector, the role of AI across the industry and how the property market has fared in the Labour Government’s first year in office.
Does the North-South divide still exist in the UK housing market?
What do the most expensive parts of the country reveal about shifting demand? And why is the Manchester housing market now outperforming many southern counterparts?
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.
The new episode of The Mortgage Insider podcast, out now
Regional housing markets now matter more than ever. While London and the Southeast still tend to dominate the headlines from a house price and affordability perspective, much of the growth in rental yields and buyer demand is coming from other parts of the UK.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.
© 2019 Perspective Publishing Privacy & Cookies
Recent Stories