Reinsurance News

Legal & General announces £500mn buy-in with Pearson Pension Plan

25th February 2019 - Author: Luke Gallin

Legal & General has announced the completion of a c.£500 million buy-in transaction with the Pearson Pension Plan, covering approximately 2,200 current pensioner members.

Longevity imageIn 2017, Legal & General provided a c.£600 million pension buy-in with the Pearson Pension Plan, covering approximately 2,400 members. And, the new £500 million transaction, alongside the 2017 buy-in, increases the insurance protection to roughly 50% of the Pearson Pension Plan’s liabilities.

The deal was able to be completed quickly as the 2017 buy-in was set-up as an “umbrella contract”, meaning future buy-in transactions could be completed leveraging similar pre-agreed terms, ultimately enabling the Trustee to move quickly.

Managing Director, UK Pension Risk Transfer at Legal & General, Chris DeMarco said: “We are delighted to have been able to partner with the Plan to further improve the security of members’ benefits. This transaction was carried out under the comprehensive umbrella contract established in 2017 alongside our first buy-in transaction with the Plan, which enabled smooth execution of this follow up transaction over a short timeframe.

“Our longstanding relationship with the Plan across our business and wide-ranging expertise in respect of these structures have been important factors in developing this solution to meet the needs of the Trustee and the Plan’s members.”

Print Friendly, PDF & Email

Recent Reinsurance News

Getting your daily reinsurance news from Reinsurance News is a simple way to receive only the reinsurance industry news that matters, delivered directly to your email inbox.

  • Only email is mandatory, but the more you tell us about yourself the better we can serve you in future!
  • This field is for validation purposes and should be left unchanged.

By submitting the form you are giving your consent to be emailed by us.

Read previous post:
Berkshire Hathaway’s primary gains offset reinsurance underwriting loss in 2018

Berkshire Hathaway reported an underwriting loss for its reinsurance businesses in 2018, but this was more than offset by strong...