United Utilities has agreed a deal worth £1.8bn to sell part of its pension liabilities to Legal & General.
The North West water provider has said the move it part of the "de-risking strategy" of the pension scheme trustees to "ensure even greater long term security".
The deal will mean Legal & General will make future payments to members of the pension scheme.
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A United Utilities spokesperson said: "United Utilities has a strong balance sheet and, significantly, a fully funded pension scheme.
"As a consequence of this robust financial position, the pension scheme trustees have taken the next step in their de-risking strategy and are insuring around two thirds of the pension liabilities with Legal and General to ensure even greater long term security of the schemes.
"This enhances UU's financial resilience with the lowest level of gearing in the sector at 58% and sufficient liquidity to cover cash flow out to at least 2026."
The move comes after the Warrington-headquartered company, which is part of the FTSE-100, defended its financial position in the wake of the unfolding situation at counterpart Thames Water.
For its latest financial year, the 12 months to March 31, 2023, United Utilities posted a revenue of £1.824bn, down from the £1.862bn it achieved in the prior period.
Its pre-tax profits were slashed from £439.9m to £256.3m while its net debt rose from £7.570bn to £8.201bn.
Its net debt includes gross borrowings with a carrying value of £8.435bn and net derivative liabilities hedging specific debt instruments of £106m net of cash and short-term deposits of £340m.
United Utilities supplies more than three million homes and 200,000 businesses across the North West.
In a recent statement issued to BusinessLive, a United Utilities spokesperson said: "United Utilities is in a robust position thanks to our prudent and resilient approach to financial management.
"We have the lowest level of gearing in the sector at just 58%. In addition, following a further cash injection of £350m last week, we have sufficient liquidity to cover our cash flow out to at least 2026.
"Our shareholders recognise our financial structure is prudent and they are supportive of the significant investment programme we are planning over the coming years.
"By funding this programme with a combination of debt and equity we can protect customers from what would otherwise be very large increases in bills in the short term, while delivering the environmental improvements we all want to see."
