Goldman Sachs subsidiary Rothesay Life has announced its first buy-out deal with the purchase of the Rank Group Pension Scheme, which has assets of around £700m.
It is thought to be the biggest transfer of pension scheme liabilities in the UK to date.
Rothesay Life chief executive Addy Loudiaids says: “The Rothesay Life approach is to use our risk management and investment expertise to provide a tailored solution which meets the needs and obligations of all parties.
“The market for insurance based buy-outs of large pension schemes is developing rapidly. Companies and trustees are increasingly looking for effective solutions to transfer pension liability risk to specialist insurance providers. Rothesay Life is ideally placed to become a leading player in this market.”
Rank finance director Peter Gill says: “This transfer is the result of an extensive review that included consideration of several options and discussions with a number of interested parties. We believe that the chosen option and the transfer announced today represent the best outcome for all concerned.
“With the financial benefits that this transfer provides, Rank will be better placed to address its near-term challenges and to grasp its long-term opportunities. In addition, members of the scheme will benefit from the high level of security provided by Rothesay Life.”