LONDON Jan 5 Specialist insurer Pension
Insurance Corporation has completed a 190 million pound ($233.34
million) pensioner buyout for the GKN Group Pension
Scheme, it said on Thursday.
The buyout covers certain current pensioner members of the
scheme, who will eventually leave the scheme and become PIC
policyholders, PIC said in a statement.
The remaining members of the scheme have been transferred to
a new GKN pension scheme and the existing scheme is being wound
up, PIC added.
Falling bond yields have increased the pension deficits of
UK companies, encouraging them to complete deals with insurers
to offload their pension risk.
Willis Towers Watson predicts 30 billion pounds in pension
liabilities will be insured through buy-ins, buy-outs and
longevity swaps in 2017, compared with 11 billion pounds in
($1 = 0.8143 pounds)
(Reporting by Carolyn Cohn, Editing by Maiya Keidan)