Business
Pension Risk Transfer Transaction
Pension Risk Transfer Transaction.
About this update from Legal & General Group Plc
[{"type":"text","content":"\n \nRNS Number : 2989B Legal & General Group Plc 06 June 2019 \n\nLegal & General announces largest UK bulk annuity with Rolls-Royce UK Pension Fund\nLegal & General Group Plc announces that the business (\"Legal & General\") has written a pension risk transfer (\"PRT\") transaction in excess of £4.6 billion with the Rolls-Royce UK Pension Fund (\"RRPF\"), covering approximately 33,000 in-payment pensioners. \n \nThis is the largest bulk annuity written in the UK and, including this, Legal & General has now transacted four of the five largest UK PRT deals, namely, British Airways (£4.4 billion), ICI (£3.0 billion) and TRW (£2.5 billion).\n \nLegal & General has a long standing relationship with Rolls-Royce, having provided investment management services to the pension plan since 1989. In 2016, Legal & General issued a £1.1bn buyout for the Vickers Group Pension Scheme. Legal & General will continue to provide investment management services for a significant proportion of RRPF's remaining £8.4 billion asset portfolio following today's transaction.\n \nIn aggregate, Legal & General has transacted over £6.2 billion of global PRT year to date (H1 2018: £0.7bn). The financial metrics and Solvency II capital strain of these deals are in line with previous transactions. \n \nNigel Wilson, Chief Executive, Legal & General, said:\n\"The Rolls-Royce transaction again demonstrates our extensive strengths and synergies. We have a unique combination of pension, actuarial and structuring expertise coupled with the capacity to create and source long-term direct investments at scale. The global PRT opportunity remains sizeable and compelling: only 8% of the £2.2 trillion of UK DB pension liabilities and 5% of the $3.5 trillion in the US have completed PRT. Our pipeline and appetite for further transactions in H2 remains strong.\"\n \nLaura Mason, CEO Legal & General Retirement Institutional, said:\n\"We have developed an excellent relationship over many years with Rolls-Royce, providing both investment and pension de-risking expertise and support. This transaction, which demonstrates the strength and expertise of the Legal & General team, is excellent news for the pension plan and the sponsor. It will provide enhanced security for plan members and the quality custom...