REG - Smiths Group PLC - Smiths completes de-risking of TI Group Pension

SmithsAnnouncement

30/06/2022 07:00

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RNS Number : 6467Q  Smiths Group PLC  30 June 2022

News Release

30 June 2022

 

 

 

SMITHS GROUP PLC

 

Smiths Group completes de-risking of the TI Group Pension Scheme with final
buy-in

 

Smiths Group plc ("Smiths" or "the Group") announces that the Trustee of the
TI Group Pension Scheme ("Scheme") has completed a deal to secure its
remaining uninsured pension liabilities, by way of a

£640 million bulk annuity buy-in with Rothesay Life plc ("Rothesay").
Establishing the best outcome for the widest group of stakeholders was
paramount, and today's agreement means all the Scheme's liabilities are now
insured, delivering security for the Scheme's 21,000 members, while removing
future risk for Smiths.

 

It is the Scheme's seventh and final buy-in, and largest step in a
well-established de-risking strategy.  The Rothesay policy ensures the
Scheme's £1.4bn of liabilities are now fully matched by insurance policies,
and that Smiths no longer bears any investment, longevity, interest rate or
inflation risk in respect of the Scheme.  The buy-in transaction did not
require Smiths to make a cash contribution.

 

The final buy-in has been secured with a commitment to fully buy-out the
Scheme over the next few years.  The buy-in means that the remaining
accounting surplus in respect of the Scheme will be extinguished and expensed
through the Smiths Group income statement in FY2022.

 

Smiths' other material UK defined benefit pension scheme, the Smiths
Industries Pension Scheme ("SIPS"), is not impacted by the agreement and
Smiths continues to pursue a similar de-risking strategy with its Trustee.

 

Paul Keel, CEO of Smiths Group, said:

"This transaction represents an excellent outcome for Scheme members, Smiths
and our shareholders. 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, 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."

 

 

 Investor enquiries                                             Media enquiries
 Jemma Spalton, Smiths Group  Stephanie Heathers, Smiths Group  Alex Le May, FTI Consulting

+44 (0)7867 390 350

+44 (0)7702 443 312

jemma.spalton@smiths.com    +44 (0)7584 113 633
smiths@fticonsulting.com

stephanie.heathers@smiths.com

Legal Entity Identifier (LEI): 213800MJL6IPZS3ASA11

 

About Smiths Group

For over 170 years, Smiths Group has been pioneering progress by improving the
world through smarter engineering. We serve millions of people every year, to
help create a safer, more efficient and better-connected world, across four
major global markets:  Energy, General Industry, Security & Defence, and
Aerospace. Listed on the London Stock Exchange, Smiths employs c.14,600
colleagues in over 50 countries. For more information visit www.smiths.com
(http://www.smiths.com/) .

 

 

About Rothesay

Rothesay is the UK's largest pensions insurance specialist, purpose-built to
protect pension schemes and their members' pensions. With over £60 billion of
assets under management, we secure the pensions of more than 830,000 people
and pay out, on average, approximately £240 million in pension payments each
month.

 

Rothesay is dedicated to providing excellence in customer service alongside
prudent underwriting, a conservative investment strategy and the careful
management of risk. We are trusted by some of the UK's best known companies to
provide pension solutions, including the schemes of Allied Domecq, Asda,
British Airways, Cadbury's, the Civil Aviation Authority, National Grid, the
Post Office, Prudential and telent.

 

Rothesay has two substantial institutional shareholders, GIC and Massachusetts
Mutual Life Insurance Company ("MassMutual"), who provide the company with
long-term support for its growth and development. In September 2020, our
shareholders increased their investment in Rothesay through a transaction
which valued the business at £5.75bn.

 

Rothesay refers to Rothesay Limited and its subsidiaries and is the trading
name for Rothesay Life Plc, an insurance company authorised by the Prudential
Regulation Authority and regulated by the Financial Conduct Authority and the
Prudential Regulation Authority. Firm Reference Number: 466067. Rothesay Life
Plc is registered in England and Wales with company registration number:
06127279 and registered address: Rothesay Life Plc, The Post Building, 100
Museum Street, London WC1A 1PB. Further information is available at
www.rothesay.com (http://www.rothesay.com)

 

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