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Prudential agrees £1bn C&W pensions deal

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Date: Wednesday 03 Sep 2008

LONDON (ShareCast) - Insurer Prudential has agreed to take responsibility for just over £1bn of pension assets and 5,000 scheme members from telecoms giant Cable & Wireless.

The Cable & Wireless Superannuation Fund (CWSF) will buy a bulk annuity policy from the Pru which will assume responsibility for the benefits payable to pensioners for the life of the fund.

The deal will generate premium income for Prudential UK of approximately £100m on an Annual Premium Equivalent (APE) basis.

“We are delighted that the Pension Fund Trustee has secured this transaction which effectively reduces the fund’s exposure to liabilities by over £1bn,” said C&W finance boss Tony Rice.

“The buy-in materially reduces the fund’s and shareholders’ exposure to the future risk of adverse changes in actuarial assumptions and investment returns.”

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