Securing the Future for Thousands of Pension Scheme Members
Legal & General has successfully finalized a significant £505 million buy-in with the Inchcape Motors Pension Scheme, ensuring the financial security of 2,295 retirees and 5,890 deferred members. This pivotal transaction, concluded in 2024, addresses the pension obligations linked to Inchcape plc, a prominent global automotive distributor operating across 32 countries, including regions such as Africa, Asia, Australia, Europe, and South America.
Since 2018, Legal & General’s Asset Management division has overseen a portion of the scheme’s assets, showcasing a longstanding partnership. Julia Yates from Vidett, serving as a Trustee for the Inchcape Motors Pension Scheme, expressed satisfaction: “In collaboration with Inchcape, we are thrilled to have achieved this buy-in, marking another progressive stride in our enduring strategy to secure long-term stability for our members. Selecting L&G as our insurance partner empowers us to uphold our enduring promise to our members.”
Yates further highlighted the teamwork involved: “Collaboration has been at the forefront of this initiative, making it a pleasure to work alongside Inchcape and all professional advisers—truly feeling like ‘one team’ with members central to every decision.”
Kai Hoffmann, Director of UK Pension Risk Transfer, Institutional Retirement at Legal & General, also shared his thoughts: “We are delighted to have concluded this buy-in with the Inchcape Motors Pension Scheme, strengthening our existing rapport with the client and offering heightened security for its members.”
The strategic execution of this deal was led by PwC, providing pivotal advice to both entities, with investment guidance from LCP and actuarial insights from XPS Pensions Group. On the legal front, Burges Salmon advised the Trustee, while Slaughter and May offered counsel to Legal & General.
Matt Cooper, Head of Pensions Risk Transfer at PwC, reflected on the achievement: “We take pride in having guided the Trustee and Sponsor over several years, preparing the Scheme for this transaction. Our delivery of a competitive tender process has resulted in a favorable outcome for all parties, enhancing the security for the Scheme’s approximately 8,000 members.”
