Legal & General Assurance Society Limited has completed an approximately £900 million buy-in with the ICI Pension Fund, securing the benefits of over 7,000 retirees.
This announcement marks the 12th transaction since the ICI Pension entered into an umbrella agreement with Legal & General in 2014, which to date, has completed transactions totalling £7 billion in aggregate with the ICI and covers around 70% of its total liabilities.
Andrew Kail, Chief Executive Officer, Legal & General Retirement Institutional, commented: “We are pleased to have deepened our relationship with the ICI Pension Fund in the most recent transaction.
“It falls almost ten years to the day since the Fund’s initial ground-breaking transaction with us in 2014 and highlights how well advised pension schemes can achieve great results when they have a deep, collaborative, and trusted relationship with an insurer. We look forward to continuing to work closely with the Fund to secure its members’ pension liabilities.”
Legal & General’s long-standing relationship and collaborative approach with ICI ensured a smooth and efficient transaction to meet its de-risking objectives.
LCP and Allen, Overy have advised the Trustee of the Fund on all twelve of the Fund’s buy-ins with Legal & General, Macfarlanes provided legal advice to Legal & General.
Heath Mottram, Chief Executive, Pensions Secretariat Services Limited, commented: “The Trustee of the ICI Pension Fund is delighted to have completed this further buy-in transaction with Legal & General. The Trustee values its ongoing relationship with Legal & General as it continues its journey to secure the benefits of all of the members of the ICI Pension Fund.”
Clive Wellsteed, Partner, Lane Clark & Peacock LLP, concluded: “In a busy market dominated by full buy-ins, this pensioner-only transaction shows how a well-prepared scheme with a de-risked investment strategy can successfully insure benefits over time to achieve its objectives.
“This transaction was the 12th buy-in for the Fund with L&G, almost 10 years to the day since the Trustee completed its initial record-breaking £3bn transaction with L&G in 2014.”
