Medical Protection Society Completes £125m Buy-In with Rothesay
The Medical Protection Society (MPS), the leading medical defence organisation, has completed a £125 million buy-in with Rothesay Life, a leading provider of pensions and life insurance solutions. The deal, which follows a competitive tender process, will transfer the longevity risk associated with 3,200 deferred and active MPS members to Rothesay. This will provide MPS and its members with greater certainty and stability over the long term. Under the terms of the buy-in, Rothesay will assume the obligation to pay future pension benefits to MPS members. This includes both index-linked and non-index-linked benefits. In return, MPS will make a payment to Rothesay, which will be used to purchase annuities that will provide the necessary funding for the benefits. MPS Chief Executive Officer, Denise McDonagh, said: “This buy-in is a significant milestone for MPS and our members. It reduces our longevity risk and provides greater financial security for the future. We are delighted to have partnered with Rothesay, who has a strong track record in managing pension risk.” David Barrie, Chief Executive Officer of Rothesay, said: “We are pleased to have been selected by MPS to provide this buy-in. We believe that our expertise in managing pension risk and our strong financial position make us well-placed to meet the needs of MPS and its members.” The buy-in has been implemented without any impact on members’ benefits or contributions. MPS members will continue to receive the same high-quality services and support from the organisation. The transaction was advised by Barnett Waddingham (for MPS) and Willis Towers Watson (for Rothesay).Medical Protection Society Secures £125 Million Buy-In Deal with Rothesay
Medical Protection Society Secures £125 Million Buy-In Deal with Rothesay
The Medical Protection Society, a non-profit organization protecting healthcare professionals in the UK, has signed a £125 million (€148 million) buy-in deal with Rothesay, a leading pension risk transfer specialist. The buy-in transaction secures the benefits of 618 plan participants, including retirees and dependents, and deferred members, without any contribution from the company. Gowling WLG advised the liquidator, while Eversheds Sutherland provided legal counsel to Rothesay. Isio served as the lead broker on the deal. Colin Richardson of Zedra Governance Limited, the scheme’s trustee, emphasized the significance of comprehensive plan preparation in securing this deal. Despite competition in the market, the plan attracted interest from five insurers, with Rothesay being selected for its high-quality offering and value for money. “The transaction ensures future pension payments for all participants, which is a positive outcome within a short timeframe,” said Richardson. Richard Pile, CFO of The Medical Protection Society, highlighted the plan’s improved funding levels and preparatory work in facilitating the swift execution of the deal. Katie Overton of Rothesay emphasized the plan’s preparation and Rothesay’s strong capabilities in delivering risk-reducing transactions, especially in the current buoyant market. Rothesay has witnessed significant momentum in the pension risk transfer market and has built a substantial pipeline of new business, thanks to its capital resources and execution experience. This deal serves as another testament to the importance of proactive plan preparation and the growing opportunities in the pension risk transfer market.Medical Protection Society (MPS) has completed a £125 million buy-in with Rothesay, covering the liabilities of around 2,000 of its UK members. The transaction, which was announced in May, is part of MPS’s ongoing strategy to manage its liabilities and secure its long-term financial position. The buy-in, which covers around 10% of MPS’s UK membership, will see Rothesay take on the responsibility for providing benefits to the members included in the transaction. MPS will continue to provide clinical and medico-legal support to these members. MPS said that the buy-in will provide its members with “greater certainty and security” for their future benefits. The transaction is the first buy-in to be completed by a medical defence organisation in the UK. It is also one of the largest buy-ins to be completed in the UK pensions market this year. Commenting on the transaction, MPS chief executive Simon Kay said: “This is a significant milestone for MPS and our members. The buy-in will provide greater certainty and security for the members included in the transaction, and it is a key part of our ongoing strategy to manage our liabilities and secure our long-term financial position.” Rothesay chief executive Addy Loudiadis said: “We are delighted to have completed this transaction with MPS. This is a landmark transaction for the UK pensions market, and it demonstrates Rothesay’s commitment to providing innovative and flexible solutions to meet the needs of our clients.”
