Just Group has completed a £120 million buy-in with the South East Water Pension Scheme (the “Scheme”). This transaction follows a 2015 transaction with Just and together the two transactions secure the benefits of all the members of the Scheme on behalf of the sponsor, South East Water Limited.
The transaction was notable in that it included a number of member benefits that were complex to insure, such as non-standard pension increases and member options, and Just was able to structure the deal to incorporate these.
Concluded in December 2024, the transaction was one of 129 completed by Just in 2024. This sets a new record within the industry, with no insurer previously reaching this volume in any single year.
Hymans Robertson acted as lead transaction adviser to the Trustee, Squire Patton Boggs provided legal advice to the Trustee and Just was represented by in-house counsel. Isio provided advice to the sponsor.
Geraint Jones, Business Development Manager at Just Group said: “We are delighted to have collaborated for a fourth time with the Trustee and for a second time on this Scheme. This second transaction secured all the remaining members’ benefits, including those whose non-standard benefits had previously been difficult to insure. The de-risking process is now complete and the member benefits secured. Member experience and a proactive approach to ESG were also important to the Trustee so we are proud that our track record and approach could meet their needs. We look forward to providing a brilliant member experience for the Scheme’s members in the years to come.”
Jo Stimpson, Chair of the Trustee, said: “We are delighted to have completed the Scheme’s final buy- in, marking the successful conclusion of a significant de-risking journey to enhance the long-term security of our members’ pensions. This achievement has been made possible through years of close collaboration with South East Water and the invaluable guidance of our advisers, ensuring the best possible outcome for our members.”
Andrew Farmer, Chief Financial Officer at South East Water, said: “The completion of this latest buy-in is an important step in further de-risking our pension liabilities while strengthening the security of members’ benefits. This milestone is the result of a well-executed strategy developed years ago and has been achieved through a strong partnership with the Trustee, reinforcing our commitment to long-term certainty for both our pension scheme members and the Company.”
Iain Church, Head of Core Transactions at Hymans Robertson said: “It has been a pleasure to work with the Trustee and the sponsor over many years to help position the scheme for this significant transaction. The buy-in represents a fantastic outcome for members, securing their benefits with a highly respected insurer. Given the scheme’s benefit complexities, which are common to the water industry, the flexibility and expertise demonstrated by Just was instrumental in ensuring this transaction met all of the Trustee’s requirements. We are delighted to have played a role in achieving this milestone.”
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