International law firm Gowling WLG has advised Rothesay Life Plc on its buy-in agreement with Cadbury Mondelēz Pension Fund, insuring £520million of defined benefit liabilities.
This is the second tranche of de-risking for the Cadbury scheme and takes the schemes insurance to around 20 per cent of its £4.6bn liabilities, following a £500m buy-in completed in 2009. The bulk annuity policy, which covers payments for around 1900 scheme members, is expected to provide greater security to Cadbury Mondelēz Pension Fund members.
Stephen Longfellow and Paul Feathers advised on the legal aspects of the transaction. It is the latest in a series of trades over a period of six years in relation to which Gowling WLG has advised Rothesay Life.
This deal followed the pension team's recent work advising the Trustee of the PGL Pension Scheme in relation to a £1.1bn bulk annuity with Phoenix Life. The trade follows a £1.2bn bulk annuity with the same insurer in 2016, which the team also advised on. The bulk purchase annuity forms part of a wider framework under which the Trustee and the sponsoring employer and their respective advisers are continuing to work together to secure the liabilities of the Scheme.
Risk transfer specialists Paul Feathers and Stephen Longfellow worked with the Trustee's usual team of Richard Black and Hannah Beacham to advise the Trustee on the trade.
These deals highlight Gowling WLG's ability to deliver expert advice on high-value pension risk transfer transactions.