Barnett Waddingham, the UK’s largest independent provider of actuarial, administration and consultancy services, has revealed more information behind its role in advising Pernod Ricard throughout the de-risking journey, which proved critical to the recently announced £3.8bn buy-in of Allied Domecq Pension Fund.
Alongside the de-risking journey, Barnett Waddingham also supported the process of securing a buy-in policy for 27,000 pensioner and deferred members of the Allied Domecq Pension Fund (ADPF).
Pernod Ricard is a long-standing client of Barnett Waddingham. Over the years the consultancy firm has helped the senior management team in Paris effectively manage their obligations to the ADPF through several actuarial valuation cycles, developing a strategy for gradually reducing the risks posed by the Fund and increasing certainty for the company.
"The preparatory work undertaken meant the fund was well placed to take advantage of favourable pricing in the annuity market and achieve a very positive outcome for all parties, especially the fund members."
More recently, the work has involved enhancing the “transaction readiness” of the ADPF, so that when a buy-in transaction became feasible, it was possible to quickly secure this in the market.
Andrew Vaughan, Partner at Barnett Waddingham, said: “The transaction is a culmination of many years work from both the company and trustees to improve the funding and reduce investment risk in the fund. The preparatory work undertaken meant the fund was well placed to take advantage of favourable pricing in the annuity market and achieve a very positive outcome for all parties, especially the fund members.”
"Barnett Waddingham’s help in supporting the company throughout the process has been invaluable."
Florence Tresarrieu, Group Treasury Director at Pernod Ricard and Valérie Popard, Group Consolidation Director, said: “We are delighted with the outcome of the transaction which is a significant positive step for both members and the company. Barnett Waddingham’s help in supporting the company throughout the process has been invaluable, particularly with short timescales for action given the need to take advantage of the market pricing available.”