REG - Vesuvius plc - Vesuvius plc Completes Full Pension Scheme Buy-In

VesuviusAnnouncement

21/12/2021 17:40

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RNS Number : 4071W  Vesuvius plc  21 December 2021

21 December 2021

 

 

VESUVIUS PLC COMPLETES FULL PENSION SCHEME BUY-IN WITH PENSION INSURANCE
CORPORATION

 

Vesuvius plc ("Vesuvius" or "the Company"), a leading metal flow engineering
company, today announces that the Trustee of the Vesuvius Pension Plan ("the
UK Plan") has signed a further pension insurance buy-in agreement with Pension
Insurance Corporation plc ("PIC"), a leading provider of pension insurance
solutions to defined benefit pension funds. This final buy-in secures an
insurance asset from PIC that matches the remaining pension liabilities of the
UK Plan, with the result that the Company no longer bears any investment,
longevity, interest rate or inflation risks in respect of the UK Plan.

This transaction, which is the seventh pension insurance buy-in arrangement
that the UK Plan has arranged with PIC, the first of which was secured in July
2012, covers £305m of liabilities. The insurance policies with PIC now cover
over £600m of liabilities, and all benefits in the UK Plan are now insured
with PIC.

The Trustees were advised by Aon, Linklaters and Premier Pensions, Vesuvius by
LCP and PIC were advised by CMS.

Guy Young, Chief Financial Officer of Vesuvius plc, said:

"This latest buy-in agreement, which results in all of the UK Plan being
covered by buy-in agreements with PIC, represents further progress in
de-risking the UK Plan whilst protecting benefits. We have reached this
positive milestone thanks to the efforts and resolve of all stakeholders but
particularly the Trustee and our advisors."

Allan Course, Chairman of the Trustee, said:

"We are delighted to have arranged the recent buy-in, which means all benefits
for the UK Plan are now secured with PIC. Working closely with Vesuvius to
manage a gradual de-risking of the plan over the last few years, and our
approach of securing multiple buy-ins, which we developed with our advisors
Aon, has enabled us to remove volatility from the UK Plan and manage the
pension plan risk effectively."

John Baines, partner in Aon's Risk Settlement Group said:

"After advising the Trustee on the original transaction in 2012, we have
continued to work with the Trustee along their de-risking journey. This series
of transactions is a great example of why a risk settlement strategy needs to
be developed on a bespoke basis, with the Scheme benefiting from a pro-active
approach to remove as much risk as affordable through a series of buy-in
transactions".

Tristan Walker-Buckton, Head of Pricing, at Pension Insurance Corporation,
said:

"We are proud to have been able to help the Trustee secure the pensions for
all members of the UK Plan through a series of buy-in transactions. We believe
that by developing their approach of de-risking through buy-in transactions,
the Trustee has been forward thinking in managing pension scheme risk".

Notes to Editors:

For further information please contact:

Vesuvius plc:

 Guy Young, Chief Financial Officer               +44 (0) 207 822 0000

+44 (0) 7584 641 315
 Euan Drysdale, Group Head of Corporate Finance

 

Aon:

 Colin Mayes           +44 (0)7801 748138

 colin.mayes@aon.com

 

Pension Corporation:

 Jeremy Apfel                   +44 (0)20 7105 2140

 apfel@pensioncorporation.com

 

About Vesuvius

Vesuvius is a global leader in molten metal flow engineering and technology
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 costs. 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
within their operations our industry experts, 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.

About Aon

Aon plc (https://www.aon.com/)  (NYSE: AON) exists to shape decisions for the
better - to protect and enrich the lives of people around the world. Our
colleagues provide our clients in over 120 countries with advice and solutions
that give them the clarity and confidence to make better decisions to protect
and grow their business.

Follow Aon on Twitter (https://twitter.com/Aon_plc)  and LinkedIn
(https://www.linkedin.com/company/aon) . Stay up-to-date by visiting the Aon
Newsroom (https://www.aon.com/home/news.jsp)  and sign up for News
Alerts here (https://aon.mediaroom.com/get-news-alerts-by-email) .

 

About Pension Insurance Corporation

The purpose of PIC is to pay the pensions of its current and future
policyholders. PIC provides secure and stable retirement incomes through
leading customer service, comprehensive risk management and excellence in
asset and liability management. At half-year 2021, PIC had insured 270,800
pension scheme members and had £47.6 billion in financial investments,
accumulated through the provision of tailored pension insurance buyouts and
buy-ins to the trustees and sponsors of U.K. 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
(http://www.pensioncorporation.com)

 

Vesuvius plc, 165 Fleet Street, London EC4A 2AE

Registered in England and Wales No. 8217766

LEI: 213800ORZ521W585SY02

www.vesuvius.com

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