Key Takeaways
- • The National Grid UK Pension Scheme is reported by Estates Gazette to be looking to sell Saw Close in Bath, a property asset, though the original article could not be retrieved to confirm terms.
- • The scheme is a £19-20bn defined benefit pension plan with over 100,000 members, according to scheme materials, and has a history of de-risking through insurer buy-ins.
- • Rothesay completed a £900m buy-in covering 7,130 uninsured pensioners and dependants, per Rothesay's announcement, the scheme's third risk transfer with the insurer.
- • Prior transactions included £2.8bn in 2019 and £800m in 2020 with Rothesay, bringing cumulative de-risking to a substantially larger figure.
Summary
Estates Gazette headline reports that the National Grid UK Pension Scheme is looking to sell Saw Close in Bath. The original article could not be retrieved, so details on the asset's valuation, buyer interest, and timing are not available from the sources reviewed.
The scheme, managed by National Grid UK Pension Scheme Trustee Limited, is described in scheme materials as a £19bn defined benefit arrangement with over 100,000 members. Its sale of a Bath property comes against a backdrop of ongoing liability management. The scheme's sponsor, National Grid, completed the planned sale of National Grid Gas plc on 31 January 2023.
On the risk transfer side, Rothesay Life PLC completed a £900m ($1.2 billion) buy-in covering 7,130 uninsured members, according to a Rothesay announcement. Mike Edwards, a partner in Aon's risk settlement group and lead risk transfer adviser on the transaction, said the deal was structured to meet the objectives of both the Trustee and National Grid. This was the scheme's third transaction with Rothesay, following £2.8bn of liabilities de-risked in 2019 and £800m in 2020. The scheme also appointed Russell Investments to an outsourced investment mandate.
The scheme, managed by National Grid UK Pension Scheme Trustee Limited, is described in scheme materials as a £19bn defined benefit arrangement with over 100,000 members. Its sale of a Bath property comes against a backdrop of ongoing liability management. The scheme's sponsor, National Grid, completed the planned sale of National Grid Gas plc on 31 January 2023.
On the risk transfer side, Rothesay Life PLC completed a £900m ($1.2 billion) buy-in covering 7,130 uninsured members, according to a Rothesay announcement. Mike Edwards, a partner in Aon's risk settlement group and lead risk transfer adviser on the transaction, said the deal was structured to meet the objectives of both the Trustee and National Grid. This was the scheme's third transaction with Rothesay, following £2.8bn of liabilities de-risked in 2019 and £800m in 2020. The scheme also appointed Russell Investments to an outsourced investment mandate.
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