In 2024, Legal & General successfully completed a substantial £505 million buy-in with the Inchcape Motors Pension Scheme. This significant transaction ensures the security of the pension benefits for 2,295 retirees and 5,890 deferred members. The deal safeguards the pension liabilities associated with Inchcape plc, a key player in the global automotive distribution industry, operating across 32 countries in Africa, Asia, Australia, Europe, and South America.
Legal & General’s Asset Management division has been entrusted with a portion of the scheme’s assets since 2018. Julia Yates of Vidett, representing the Trustee of the Inchcape Motors Pension Scheme, expressed her satisfaction: “Collaborating with Inchcape, we are thrilled to finalize this buy-in, marking a significant stride in our ongoing strategy to ensure long-term security for all our members. Choosing L&G as our insurer partner empowers us to uphold our enduring commitment to our members.”
Yates further emphasized the collaborative nature of the project, stating, “Teamwork has been essential throughout this initiative, making it a pleasure to work with Inchcape and all professional advisors. It truly felt like ‘one team’ with members at the core of every decision made.”
Kai Hoffmann, Director of UK Pension Risk Transfer at Legal & General, added, “We are delighted to have concluded this buy-in with the Inchcape Motors Pension Scheme, strengthening our bond with this client and enhancing security for its members.”
PwC played a pivotal role as the lead adviser to both parties, with LCP providing investment guidance and XPS Pensions Group offering actuarial advice. Burges Salmon gave legal counsel to the Trustee, while Slaughter and May advised Legal & General.
Matt Cooper, Head of Pensions Risk Transfer at PwC, commented, “We take pride in having advised the Trustee and Sponsor over several years to prepare the Scheme for this transaction. Our competitive tender process culminated in a positive outcome for all stakeholders, ensuring enhanced security for the Scheme’s approximately 8,000 members.”
