LONDON (ShareCast) - (Sharecast News) - QinetiQ Group announced on Wednesday that the QinetiQ Pension Scheme has completed its first bulk annuity insurance buy-in for approximately £690m.
The FTSE 250 company said Scottish Widows was selected for the buy-in following a competitive process, with the agreement covering around 33% of the scheme's liabilities.

It said the buy-in removed longevity, interest rate, and inflation risk for a proportion of the scheme, and was in line with its strategy of de-risking the pension liabilities.

As a result of the transaction, the accounting pension surplus recorded on the group's balance sheet would reduce by an estimated £120m, the board said, with no related cash impact.

"This buy-in improves the risk profile and investment efficiency of the scheme for all members and represents a significant step towards securing the benefits promised," said Huw Evans of BESTrustees, chairman of the scheme.

"The trustees are grateful to their advisers and to the company and its advisers all of whom worked seamlessly together to ensure that the transaction followed an effective and efficient process."

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