Last checked at 26 Jun 2017 10:00
26 June 2017
VESUVIUS PLC ("VESUVIUS" OR "THE GROUP")
EXTENDS ITS PENSIONER BUY-IN ARRANGEMENT WITH PENSION INSURANCE CORPORATION RELATING TO FURTHER TRANCHES OF ITS UK PENSION PLAN LIABILITIES
London, 26 June 2017 - Vesuvius, a global leader in molten metal flow engineering, today announces that the Trustee of the Vesuvius Pension Plan ("the Plan") has signed a fifth pension insurance buy-in with Pension Insurance Corporation plc ("PIC"), a specialist insurer of defined benefit pension funds. The total liabilities of the Plan covered by PIC are now in excess of £400 million at current market rates, representing around fifty per cent of the Plan's total pensioner liabilities.
The original buy-in, signed in 2012, covered around £320 million of pensioner liabilities, with follow on transactions allowing the Trustees to "roll-in" future retirees into the buy-in policy, on an annual basis for a number of years. The Trustee and PIC have now extended the arrangement with an innovative, evergreen, open-ended agreement to add future tranches upon meeting various pre-agreed parameters. This creates greater certainty for the Trustee in delivering their aim of fully insuring the pension scheme over time.
Guy Young, Chief Financial Officer of Vesuvius plc, said: "De-risking the UK plan in this way, by removing the inflation, longevity and interest rate risks for the insured liabilities, will reduce still further the level of volatility to which Vesuvius is exposed in future pension funding costs through its sponsorship of the UK Plan. This latest buy-in agreement represents a further demonstration of the Company's intention to work with the Trustee to de-risk the UK Plan in a managed way."
Allan Course, Chairman of the Trustees, said: "We are delighted to have been able to work with the team at PIC to secure a new tranche of pensioners, building on the four previous transactions completed with them. This further improves and increases the security for the members of the Plan."
Tristan Walker-Buckton, Senior Actuary at PIC, said: "The Vesuvius Pension Plan Trustees have been forward thinking and proactive in seeking to manage their pension risk. They were one of the original Trustee Boards to have agreed terms for an automatic roll-in of future pensioners and are again one of the first to conclude a similar agreement under Solvency II. We look forward to a long partnership with the Trustees."
For further information please contact:
Shareholder/analyst enquiries:
Vesuvius plc
Guy Young, Chief Financial Officer +44 (0) 207 822 0000
Euan Drysdale, Group Head of Corporate Finance +44 (0) 207 822 0027
Virginia Skroski, Investor Relations Manager +44 (0) 207 822 0016
Media enquiries:
MHP Communications John Olsen/Jamie Ricketts/Ollie Hoare +44 (0) 203 128 8100
Pension Insurance Corporation:
Jeremy Apfel apfel@pensioncorporation.com +44 (0)20 7105 2140
About Vesuvius plc
Vesuvius is a global leader in molten metal flow engineering principally serving the steel and foundry industries.
We develop innovative and customised solutions, often used in extremely demanding industrial environments, which enable our customers to improve their manufacturing processes, enhance product quality and reduce energy consumption. These include flow control solutions, advanced refractories and other consumable products and - increasingly - related technical services including data capture.
We have a worldwide presence. We serve our customers through a network of low-cost manufacturing plants located close to their own facilities, and embed our industry experts within their operations, who are all supported by our global technology centres.
Our core competitive strengths are our market and technology leadership, strong customer relationships, well established presence in developing markets and our global reach, all of which facilitate the expansion of our addressable markets.
Our ultimate goal is to create value for our customers, and to deliver sustainable, profitable growth for our shareholders giving a superior return on their investment whilst providing each of our employees with a safe workplace where he or she is recognised, developed and properly rewarded.
Vesuvius plc, 165 Fleet Street, London EC4A 2AE
Registered in England and Wales No. 8217766
www.vesuvius.com
About Pension Insurance Corporation
The purpose of Pension Insurance Corporation plc ("PIC") is to pay the pensions of its policyholders. At year end 2016, PIC had insured 134,900 pension fund members and had £22.6 billion in financial investments, accumulated through the provision of tailored pension insurance buyouts and buy-ins to the trustees and sponsors of UK defined benefit pension schemes. Clients include FTSE 100 companies, multinationals and the public sector. PIC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority (FRN 454345). For further information please visit www.pensioncorporation.com