M&S pension scheme transfers £1.4 billion to two insurers

LONDON: British retailer Marks & Spencer’s pension scheme has transferred a total of 1.4 billion pounds ($1.77 billion) in liabilities to two insurance groups Pension Insurance Corporation (PIC) and Phoenix, the insurers said.
British companies are increasingly offloading risks linked to their pension schemes to specialist insurance companies, partly because of increased life expectancy. A company’s pensions obligations sit on its balance sheet and can limit its financial options, so often boards seek to pass on the burden.
PIC is insuring £900 million in liabilities of the £10 billion Marks & Spencer Pension Scheme in its first transaction with the scheme, it said in a statement.
Phoenix is insuring £460 million in a second transaction, it said in a separate statement. — Reuters