PIC completes second buy-in with Clarks Footwear Pension Fund for £540m

Pension Insurance Corporation (PIC), a specialist insurer of defined benefit pension schemes, has completed a second buy-in with the Trustee of the C&J Clark Pension Fund – CJC Section and Flexible Section (the Fund) for £540 million.

This follows the Fund’s initial £280 million buy-in with PIC in 2022, bringing the total insured defined benefit liabilities to £820 million. It secures the pensions of nearly 5,000 retirees and dependents, along with over 3,000 deferred policyholders.

The Fund is backed by C&J Clark International Limited (Clarks), the well-known British footwear retailer established in 1825 by Cyrus and James Clark in Street, Somerset, where the company remains headquartered.

Libby Edwards, Chair of the Fund, said, “We’re delighted to have completed this transaction with PIC, which secures the long-term security of all our members’ benefits. Our experience of PIC’s customer service following the previous transaction meant choosing to work with them again was an easy decision.”

Philip Yau, Chief Financial Officer at Clarks, commented, “We are pleased to achieve our longstanding ambition to fully buy-in the C&J Clark Pension Fund which is a major step in fully securing members’ benefits at the same time as eliminating pension related balance sheet volatility. We would like to thank the Fund Trustee and the support of all the advisers for their hard work in achieving this milestone.”

Deepash Amin, Head of New Business Strategy at PIC, added, “It is always rewarding to complete repeat business with clients who have had first-hand experience of our exceptional customer service. We are delighted to have extended our relationship with the Fund and its members. It has been a pleasure working with the Trustees and their advisers to secure this transaction.”

Michael Abramson, Partner at Hymans and lead adviser to the Trustee, noted, “The buy-in represents a positive step in the management of the Fund as part of the good work of the Classified as Confidential Trustee in continuing to implement its de-risking strategy for the members with support from the Company. The key to success was early engagement with the insurers, setting out a clear set of objectives so that the Trustee was able select the right partner for their members.”

Isio served as the lead advisor to the Company, with Burges Salmon providing legal advice. The Trustee received legal advice from Travers Smith, investment guidance from WTW, and covenant advice from Penfida. PIC was advised by CMS.

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