Contship Containerlines agrees £25m full scheme buy-in with L&G

The Trustees of the Contship Containerlines Limited 1979 Pension Scheme have agreed to a c. £25 million full scheme buy-in with L&G, meaning that the benefits for all the scheme’s members are now insured.

The transaction was agreed in June of 2024 and covers c. 150 members. Barnett Waddingham reportedly acted as actuarial, administration, investment and risk transfer advisers, while legal advice was provided to the Trustees by Burges Salmon.

Paul Rogers, Chair of Trustees, commented, “Our job as Trustees is first and foremost is to ensure our members receive the benefits they are entitled to, which is why we are thrilled to have secured this transaction with L&G.

“It has been an aspirational goal of ours for many years, but now has become a reality. This wouldn’t have been possible without the great support TUI has given the Scheme.

“We would also like to thank our advisers, Barnett Waddingham (who have advised us for over 25 years) and Burges Salmon, for their leadership on this project and through the Scheme’s journey to this stage.

“We are also very appreciative to L&G for working with the Trustees to achieve this buy-in transaction.”

Adrian Somerfield, Director, UK Pension Risk Transfer at L&G, said, “We are pleased to have strengthened our relationship with an existing client of our asset management business.

“The Trustees adopted our Flow proposition which enabled a price lock to their Legal & General asset management pooled funds before ultimately novating these to us as part of premium payment.

“This ensured cost certainty and a seamless transaction. This buy-in fully secures the Scheme’s members’ benefits and is a great outcome for all parties involved.”

Joerg Rosendahl, TUI, added, “We are very happy that the Scheme has been able to reach this agreement with L&G, providing further security for member benefits.

“We are pleased to have worked closely with the Trustees and their advisers to support the Scheme to complete this transaction.”

Nikhil Patel, Senior Risk Transfer Adviser at Barnett Waddingham (BW), noted, “This is a great outcome for the Scheme and its members. Worked closely with the Trustees, the BW teams were able to ensure the Scheme could efficiently navigate the crowded market and work collaboratively with L&G to achieve the transaction objectives. We are delighted to have helped the Trustees achieve this important milestone.”

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