Rolls Royce sells UK pension fund to PIC in 4.3bn pound deal

LONDON: Aircraft engine maker Rolls-Royce sold its UK pension fund to Pension Insurance Corporation (PIC) in a 4.3 billion pound ($5.78 billion) deal, PIC said in a statement on Sunday.

The deal will cover Rolls-Royce’s entire outstanding liabilities to its workers, comprising the pensions of 36,000 people.

“This is a win-win for all our stakeholders” Rolls-Royce CFO Helen McCabe said in the statement, adding that it is a step towards simplifying Rolls-Royce.

The transaction follows PIC’s announced acquisition by Athora, pending regulatory approval. The deal was first reported by Bloomberg News earlier this week.

PIC specializes in defined benefit pension schemes, known as bulk annuities. Demand for bulk annuities has surged in the last few years as companies seek to shed defined benefit, or final salary, pension schemes from their balance sheets.