The BAL section of the Tui Group UK Pension Trust has completed a £370m buy-in with Legal & General (L&G) Assurance Society, meaning that all section benefits are now fully secured.

The trustee worked collaboratively with L&G in the 18 months following an initial £610m buy-in in 2021, in order to monitor pricing and ensure they were in a position to react to favourable market conditions and transact at an opportune time.

Around £30m of the premium has also been deferred to allow the scheme to run-off some illiquid assets. This is payable over the next two years.

This ensured an efficient transaction while affordability remained attractive.

LCP was the lead transaction adviser to the trustee and also provided actuarial and investment advice.

Linklaters provided legal advice to the trustee, while Isio and Herbert Smith Freehills provided advice to the sponsor, and Macfarlanes provided legal advice to L&G.

Chair of trustees at PAN Trustees Partner, Mike Roberts, highlighted the deal as a "prime example" of how collaboration between all parties can get the best outcome for members of the scheme.

"Securing the benefits for our members has been the aim of the trustee for many years, and we are delighted to have achieved another successful transaction," he said.

Adding to this, group pensions manager at Tui, Nick Dunk, said: "Following a collaborative process working with the trustee, we are pleased to have completed a further transaction in respect of the trust as part of our de-risking journey.

"We have now worked to fully insure the liabilities of two sections of the trust which provides further security for both members and Tui."

Director at L&G Institutional Retirement, Adrian Somerfield, also highlighted the importance of stakeholders working together, stating: “We are pleased that the trustee has chosen to secure all section benefits with us.

"Working collaboratively with the trustee, sponsor and their advisors, we helped implement an efficient solution for the scheme’s illiquid investments and now look forward to supporting the members over the long term."

Partner at LCP, Imogen Cothay, also described the latest transaction as a "significant milestone", with all members’ benefits in the section now insured in full.

"Having advised the trustee since 2011, it has been a pleasure to support the trustee in its collaboration with Tui UK to develop and implement a long-term plan for the scheme, and to have seen this achieved so successfully," she added.

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