Last checked at 1 Feb 2017 07:00
News Release
London, 1 February 2017
For immediate release
Smiths Group extends pension de-risking with £130m buy-in
Smiths Group plc ("Smiths" or "the Company") announces today that the Trustee of the TI Group Pension Scheme (the "Scheme") has entered into a bulk annuity buy-in agreement with Pension Insurance Corporation ("PIC"), a specialist insurer of defined benefit pension funds.
Demonstrating the Company's commitment to de-risking its pension liabilities, the buy-in policy covers liabilities totalling £130 million relating to approximately 1,500 legacy Scheme pensioners and dependants. Through a series of buy-ins, around £1 billion of the TI Scheme liabilities has now been insured.
Chris O'Shea, Chief Financial Officer, said:
"Working closely with the Scheme Trustee, we continue to make progress in de-risking our pension liabilities. With today's announcement, we are creating an ever more effective hedge in the TI Scheme against the impact of changes in inflation, interest rates, duration and mortality assumptions.
"Our sustained focus, over many years, on de-risking the Company's pension liabilities has reduced funding volatility and has led to significantly lower funding obligations going forward - freeing up capital for Smiths to invest in growth opportunities. Over 90% of the Group's total pension liabilities are hedged through our liability driven investment strategy."
Chris Surch, Chairman of the TI Group Pension Scheme Trustee, said:
"This is the second buy-in we have completed with PIC as part of our long-term de-risking strategy. We have made considerable strides to completely de-risk the Scheme and this remains our long-term aim."
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
Deborah Scott, FTI Consulting
+44 (0)203 727 1459
+44 (0)797 953 7449
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