June 14, 2016 / 12:00 PM / 3 years ago

Scottish Widows completes $892 mln pension buy-in deal for ICI

A woman uses a cash machine at a Lloyds Bank branch in central London, Britain February 25, 2016. REUTERS/Paul Hackett

LONDON (Reuters) - Lloyds Banking Group’s (LLOY.L) life insurance arm, Scottish Widows, has completed a 630 million pound pension buy-in deal for the ICI Pension Fund, it said on Tuesday.

The buy-in means that Scottish Widows will insure the pension risk of more than 4,000 of the ICI fund’s pensioner members, Scottish Widows said in a statement.

The deal follows several buy-ins completed by the ICI Pension Fund since March 2014, Scottish Widows said, adding that the company has been added to the fund’s trustee insurer panel to be considered for further bulk annuity deals.

The bulk annuity market, which involves insuring all, through a buy-out, or part, through a buy-in, of a company’s defined benefit, or final salary, pension scheme, has become more competitive after British pensions reform slashed demand for individual annuities, which pay a fixed income for life.

Reporting by Carolyn Cohn; editing by Jason Neely

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