Vesuvius plc Vesuvius extends Pensioner buy-in arrangement (0699J)
26 June 2017 - 7:00PM
UK Regulatory
TIDMVSVS
RNS Number : 0699J
Vesuvius plc
26 June 2017
26 June 2017
VESUVIUS PLC ("VESUVIUS" OR "THE GROUP")
EXTENDS ITS PENSIONER BUY-IN ARRANGEMENT WITH PENSION INSURANCE
CORPORATION RELATING TO FURTHER TRANCHES OF ITS UK PENSION PLAN
LIABILITIES
London, 26 June 2017 - Vesuvius, a global leader in molten metal
flow engineering, today announces that the Trustee of the Vesuvius
Pension Plan ("the Plan") has signed a fifth pension insurance
buy-in with Pension Insurance Corporation plc ("PIC"), a specialist
insurer of defined benefit pension funds. The total liabilities of
the Plan covered by PIC are now in excess of GBP400 million at
current market rates, representing around fifty per cent of the
Plan's total pensioner liabilities.
The original buy-in, signed in 2012, covered around GBP320
million of pensioner liabilities, with follow on transactions
allowing the Trustees to "roll-in" future retirees into the buy-in
policy, on an annual basis for a number of years. The Trustee and
PIC have now extended the arrangement with an innovative,
evergreen, open-ended agreement to add future tranches upon meeting
various pre-agreed parameters. This creates greater certainty for
the Trustee in delivering their aim of fully insuring the pension
scheme over time.
Guy Young, Chief Financial Officer of Vesuvius plc, said:
"De-risking the UK plan in this way, by removing the inflation,
longevity and interest rate risks for the insured liabilities, will
reduce still further the level of volatility to which Vesuvius is
exposed in future pension funding costs through its sponsorship of
the UK Plan. This latest buy-in agreement represents a further
demonstration of the Company's intention to work with the Trustee
to de-risk the UK Plan in a managed way."
Allan Course, Chairman of the Trustees, said: "We are delighted
to have been able to work with the team at PIC to secure a new
tranche of pensioners, building on the four previous transactions
completed with them. This further improves and increases the
security for the members of the Plan."
Tristan Walker-Buckton, Senior Actuary at PIC, said: "The
Vesuvius Pension Plan Trustees have been forward thinking and
proactive in seeking to manage their pension risk. They were one of
the original Trustee Boards to have agreed terms for an automatic
roll-in of future pensioners and are again one of the first to
conclude a similar agreement under Solvency II. We look forward to
a long partnership with the Trustees."
For further information please contact:
Shareholder/analyst enquiries:
Vesuvius plc
Guy Young, Chief Financial Officer +44 (0) 207 822 0000
Euan Drysdale, Group Head of Corporate Finance +44 (0) 207 822
0027
Virginia Skroski, Investor Relations Manager +44 (0) 207 822
0016
Media enquiries:
MHP Communications John Olsen/Jamie Ricketts/Ollie Hoare +44 (0)
203 128 8100
Pension Insurance Corporation:
Jeremy Apfel apfel@pensioncorporation.com +44 (0)20 7105
2140
About Vesuvius plc
Vesuvius is a global leader in molten metal flow engineering
principally serving the steel and foundry industries.
We develop innovative and customised solutions, often used in
extremely demanding industrial environments, which enable our
customers to improve their manufacturing processes, enhance product
quality and reduce energy consumption. These include flow control
solutions, advanced refractories and other consumable products and
- increasingly - related technical services including data
capture.
We have a worldwide presence. We serve our customers through a
network of low-cost manufacturing plants located close to their own
facilities, and embed our industry experts within their operations,
who are all supported by our global technology centres.
Our core competitive strengths are our market and technology
leadership, strong customer relationships, well established
presence in developing markets and our global reach, all of which
facilitate the expansion of our addressable markets.
Our ultimate goal is to create value for our customers, and to
deliver sustainable, profitable growth for our shareholders giving
a superior return on their investment whilst providing each of our
employees with a safe workplace where he or she is recognised,
developed and properly rewarded.
Vesuvius plc, 165 Fleet Street, London EC4A 2AE
Registered in England and Wales No. 8217766
www.vesuvius.com
About Pension Insurance Corporation
The purpose of Pension Insurance Corporation plc ("PIC") is to
pay the pensions of its policyholders. At year end 2016, PIC had
insured 134,900 pension fund members and had GBP22.6 billion in
financial investments, accumulated through the provision of
tailored pension insurance buyouts and buy-ins to the trustees and
sponsors of UK defined benefit pension schemes. Clients include
FTSE 100 companies, multinationals and the public sector. PIC is
authorised by the Prudential Regulation Authority and regulated by
the Financial Conduct Authority and Prudential Regulation Authority
(FRN 454345). For further information please visit
www.pensioncorporation.com
This information is provided by RNS
The company news service from the London Stock Exchange
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