Clara-Pensions and Wates Pension Fund agreement

Commenting on the Clara-Pensions and Wates Group announcement, Calum Cooper, Head of Pensions Policy Innovation at Hymans Robertson says:

“Clara is a rare pocket of member first innovation in the Defined Benefit landscape. This, their third transaction, is different. Here is another industry first. A first to exchange a commercial covenant for a more valuable financial covenant. This sets out a pathway for others to follow. Born of purpose, patience and relentless member first persistence, Clara have already transformed the later life finances of tens of thousands of current and future pensioners. As the Clara Pensions Trust Scheme Actuary, it’s been a huge privilege to go on the journey with Clara since 2017. This feels like the end of the beginning. For members of DB schemes looking to increase the level and the security of their pensions, the best is yet to come.”

Commenting on the Clara Pensions and Wates Group announcement, Iain Pearce, Head of Alternative Risk Transfer, Hymans Robertson, says: 

“We welcome this development of this third Clara transaction. It’s another important step forward in giving sponsors and trustees the range of solutions they need to deliver the benefits due to members of this pension scheme.

“Superfunds have the potential to play an important role in our industry and have the ability to create significant value for stakeholders. They can be the preferred option in many different scenarios and are not only relevant for schemes with distressed or insolvent sponsors. As this transaction demonstrates, superfund transfers can be a positive step for all involved, and certainly shouldn’t be viewed as a sign of failure.

“This transaction also demonstrates the changing perception of superfunds. There’s a positive feedback loop now that the market is gaining momentum, with each deal building confidence and strengthening deal pipeline for providers. We still expect some bumps in the road, given the market is still in it’s infancy, but it now seems likely that this market will moves into a new phase of growth.”