Lucida PLC

Lucida secures Morgan Crucible UK Pensioners buy out deal

Mar 17 2008

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Lucida plc, a new insurance company formed to take on longevity risk and corporate pension schemes, today announces a deal with the Trustees of the Morgan Crucible UK pension schemes, worth in excess of £160 million, to transfer the pensioner risks of both its main and senior schemes to Lucida.

Jonathan Bloomer, Executive Chairman of Lucida, commented, “We are pleased that the Morgan Crucible Trustees have chosen us to help them manage their risks, following a rigorous vetting and selection process. Our team, our strong long term capital backing and our commitment to excellent customer care gave us an edge in a very competitive market.”

Geoff Weir, Director of Benefits and Compensation at Morgan Crucible and Trustee Director of the plans, said, “As part of the selection process, the Trustees established a set of criteria and objectives which Lucida met, together with a very competitive price. Our pensioners will continue to receive a high standard of service, with the added protection of backing from a regulated insurance company. The security of our scheme members is paramount and the Trustees are delighted to be working with Lucida in this partnership.”

Lane Clark and Peacock LLP advised the Trustees throughout, from initial discussions to final negotiations, ensuring that the Trustees’ and Morgan’s requirements were fully met. Richard Murphy, LCP partner said “It is great news for employers and trustees of defined benefit schemes that the buyout market can now realistically be used as part of the ongoing risk management and delivery of benefits. Lucida’s attractive offering makes them a welcome addition to the buyout market.”

About Lucida
Lucida plc is a new company created specifically to focus on annuity and longevity risk business, including the defined benefit pension buy-out market and the market for bulk annuities.

Founded by Jonathan Bloomer, Christopher Wales and David Clinton, more information about the management and the company’s business philosophy can be found on our website: www.lucidaplc.com.

Lucida is backed by Cerberus Capital Management L.P., one of the largest groups of funds in the world with more than US$25 billion of equity funds currently under management. Lucida plc is authorised and regulated by the Financial Services Authority (“FSA”).

About Morgan Crucible
Morgan Crucible is a global specialist materials engineering company serving the needs of customers in a wide range of markets. From medical instruments, aerospace, power generation and satellite communications to body armour, trains and fire protection systems, Morgan Crucible’s materials, technical and insulating ceramics and carbon, are fundamental components of many of the modern world’s most sophisticated products. Morgan Crucible has manufacturing locations in over 30 countries, has approximately 9,500 employees and is listed on the London Stock Exchange.

About Lane Clark & Peacock LLP
Lane Clark & Peacock LLP (LCP) is one of the leading firms of consulting actuaries in the UK, with a wide range of clients including FTSE 100 companies as well as a number of charities and unions. LCP has taken a market leading role in the use by companies and trustees of the risk management solutions now being offered by insurance companies. For more information on LCP, please visit our website at www.lcp.uk.com.

For further information, please contact:

Margaret Snowdon/Chris Wales
Lucida plc: +44 207 647 1600

Dominic Fry/Tom Murray
Tulchan Communications: +44 207 353 4200

Victoria Gould
The Morgan Crucible Company plc: +44 1753 837237

Robin Walker/Clare Strange
Finsbury: +44 207 251 3801

Mark Roberts
Lane Clark & Peacock LLP
+44 (0) 20 7432 3096

Mark Knight
Broadgate
+44 (0) 20 7726 6111