(Alliance News) - Smiths Group PLC said on Thursday it completed the de-risking of the TI Group Pension Scheme through a GBP640 million bulk annuity buy-in with insurance company Rothesay Life PLC.
Smiths said the agreement means that all the scheme's liabilities are now insured, removing future risk from the London-based engineering firm.
The buy-in did not require Smiths to make a cash contribution. It has been secured with a commitment to fully buy-out the scheme over the next few years.
It was the scheme's seventh and final buy-in.
Chief Executive Paul Keel said: "We have supported the scheme over many decades and made significant cash contributions. That funding, combined with excellent stewardship by the scheme's trustee, has meant that the scheme can now be fully de-risked for the benefit of members and the group."
"Importantly," Keel continued, "the successful execution of this transaction means Smiths can focus future investments on our strategy to accelerate growth, improve execution and support our great people."
Shares were down 2.2% at 1,390.50 pence on Thursday morning in London.
By Heather Rydings; heatherrydings@alliancenews.com
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Smiths Group (SMIN)