Legal & General has agreed a £544 million full buy-in of four pension schemes sponsored by Evonik UK Holdings.
The deal secures the benefits of over 3,600 UK defined benefit pension scheme members and facilitates the merger of the four schemes as part of the de-risking process.
L&G has an existing relationship with Evonik Industries AG, having provided investment management services through Legal & General Investment Management (LGIM) across the company’s UK and US pension schemes.
In the UK, both the trustee and the company worked in partnership with Legal & General on a sole insurer basis to complete the buy-in transaction by the end of 2020, three months after the initial discussions.
“This transaction demonstrates how we are uniquely placed to work across both the UK and US to offer global market-leading PRT services and help multinational companies secure their pension obligations across countries,” said John Towner, Head of New Business, Legal & General Retirement Institutional.
“Following the success of our transaction in the US, we are pleased to have been trusted to work on a sole insurer basis with Evonik and the UK Trustee to secure its members’ pension benefits in the UK.
“We continue to see high demand for PRT transactions across both markets and look forward to helping more global businesses on their de-risking journeys.”
This transaction allows Evonik to continue its global pensions de-risking journey, having agreed a $93 million lift-out of the US plan in September 2020 with Legal & General Retirement America (LGRA), covering over 1,700 retirees.
Stefan Hentschel, Global Head of Pensions, Evonik added, “The Company is pleased with the US and UK transactions which provide certainty for the members’ pensions with a strong provider and reduce the financial risk to the sponsor.
“We were able to leverage the relationship and work effectively with Legal & General to complete both transactions and de-risk the schemes in 2020.”