Last checked at 28 Oct 2016 07:00
News Release
London, 28 October 2016
For immediate release
Smiths Group further de-risks pension liabilities with £250m buy-in
Smiths Group plc ("the Company") announces today that the Trustee of the Smiths Industries Pension Scheme (the "Scheme") has entered into a bulk annuity buy-in agreement with Pension Insurance Corporation, a specialist insurer of defined benefit pension funds.
This agreement is the latest step in the Company's policy of progressively de-risking pension liabilities. The buy-in policy covers liabilities totalling £254 million relating to over 3,000 legacy Scheme pensioners and dependants.
Chris O'Shea, Chief Financial Officer, said:
"Today's agreement is a further material step towards the de-risking of Smiths Group's pensions funding obligations. Working in partnership with the Scheme Trustee, we have made substantial progress in recent years to reduce risk and funding volatility and consequently we have a lower deficit and reduced funding obligations. We will continue to work with the Trustee to consider further opportunities to de-risk the Scheme.
"As part of our overall approach to de-risking, today's agreement means that more than 25% of the Company's total UK pension assets are now invested in buy-in policies that provide an effective hedge against the impact of changes in inflation, interest rates and mortality assumptions for the related liabilities."
Nicholas Godden, Chair of the Smiths Industries Pension Scheme Trustee, said:
"This buy-in is a significant step in our de-risking plan and we are very pleased to have been able to complete it at this point. The Company has worked closely with the Trustee to de-risk the scheme and continues to support, and indeed encourage, reducing funding risk."
ENDS
Contact details
Investor enquiries
Andrew Lappin, Smiths Group
+44 (0)20 7004 1657
+44 (0)78 5461 1966
andrew.lappin@smiths.com
Kirsty Law, Smiths Group
+44 (0)20 7004 1672
+44 (0)75 8315 4386
kirsty.law@smiths.com
Media enquiries
Andrew Lorenz, FTI Consulting
+44 (0)203 727 1323
+44 (0)777 564 1807
smiths@fticonsulting.com
Smiths is a global technology company listed on the London Stock Exchange (SMIN) and operates a sponsored level one ADR programme (SMGZY). A world leader in the practical application of technologies, Smiths Group delivers products and services for the threat & contraband detection, medical devices, energy and communications markets worldwide. Our products and services make the world safer, healthier and more productive. Smiths Group employs 22,000 people in over 50 countries. For more information visit www.smiths.com