Legal & General Retirement America (LGRA) has completed a c.$145 million pension risk transfer (PRT) transaction with Rolls-Royce North America Inc.
The deal, which closed in July, covered approximately 1,200 plan participants from the Retirement Plan for Rolls-Royce NA, and also came off the heels of LGRA’s largest H1 to date in the US PRT market.
Re/insurance broker Aon, advised Rolls-Royce on the transaction.
Legal & General Group has a long-standing relationship with Rolls-Royce providing both investment and pension de-risking expertise and support in the UK.
Back in 2019, Legal & General secured a £4.6 billion transaction with the Rolls-Royce UK Pension Fund, and in 2016, a £1.1bn buyout for the Vickers Group Pension Scheme.
“We are thrilled to expand the relationship between Legal & General and Rolls-Royce with this transaction and are committed to providing these participants with the world class customer service for which we are known. This deal demonstrates Legal & General’s position as a global PRT market leader and underscores why companies value our pension risk solutions,” commented George Palms, President, Legal & General Retirement America.
“We are pleased to have secured the retirement income for our former colleagues and their families, which is the result of prudent funding of our pension plan over many years. As well as providing further security for pension participants, the transfer strengthens and de-risks our balance sheet which is good for our business, employees and investors. We will always act to ensure that our pension promises are fulfilled,” added Fiona Brown, Head of Pensions, Rolls-Royce.
