Opting for LDI
UK life insurance group Britannic restructured its pension scheme in 2004, adopting a liability-driven investment approach - despite the fact the scheme was fully funded. Two years on, it says it made the right move
Pick up a UK newspaper, and chances are you'll see a story about the size of pension deficits at one of the FTSE-100 companies, and the urgent remedies it is taking to plug the gap between assets and liabilities. It is therefore something of a surprise that UK life insurance group Britannic opted to comprehensively restructure its £1 billion closed pension fund and implement liability-driven investment (LDI) principles in 2004 - even though the scheme was fully funded.
Before the restructuring
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