The UK pension fund of Australian flag carrier Qantas has conducted a £40m ($51m) buy-in with Pension Insurance Corporation (PIC), the second such deal between the two firms.
The first deal, valued at £25m, took place in 2018 and according to a statement released by PIC, the follow-up transaction means that all Qantas UK pension scheme member benefits are now fully insured.
The latest transaction covers the benefits of 62 current pensioners and 168 deferred members.
The chairman of the pension scheme trustees said in the PIC statement that the latest transaction was part of an Aon-devised de-risking strategy which the fund has been implementing over the preceding five years.
PIC received legal advice from Herbert Smith Freehills, while the trustees were advised by Aon. Eversheds Sutherland and Reed Smith LLP provided additional legal advice in relation to benefits.
The size of PIC’s latest deal is dwarfed by the $8.36bn buy-in that it completed with fellow insurer RSA in February.
Qantas was founded in 1920 and made its first international passenger flight in 1935.