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Legal & General agrees £30m buy-in with John Townsend Trust Pension and Assurance Scheme
PPF+ transaction provides further security for all scheme members.
2 Nov 2021
Legal & General Assurance Society Limited (“Legal & General”) today announces that it has agreed a £30 million full scheme buy-in transaction with the John Townsend Trust Pension and Assurance Scheme (“the Scheme”), covering the benefits of over 280 pension scheme members.
The Scheme entered Pension Protection Fund (PPF) assessment in December 2015, following the insolvency of Sponsor, John Townsend Trust, a charity that provided education and care to deaf children and young people. This type of PPF+ transaction enables the Trustees to secure benefits for the Scheme’s members at or above the level of compensation that would have been provided by the PPF.
This transaction is a further demonstration of Legal & General’s expertise in delivering beneficial outcomes for members by enabling pension schemes to ‘exit’ the PPF with a Pension Risk Transfer solution.
Independent company, Open Trustees, was advised on the transaction by Barnett Waddingham LLP and legal advice was provided to Open Trustees by Gowling LLP.
Adrian Somerfield, Director, Legal & General Retirement Institutional: “Being able to help pension schemes whose sponsors have become insolvent is extremely rewarding and we are delighted to have helped the Trustees secure a transaction which provides long-term security to the Scheme’s members. This transaction is a great demonstration of how we can assist pension schemes exit PPF assessment and move to buyout with an insurance company.”
For further information:
Margrit Williams
Director of External Engagement
Legal & General Capital
Notes to editors:
Established in 1836, Legal & General is one of the UK’s leading financial services groups and a major global investor, with £1.2 trillion in total assets under management (as at FY23) of which c40% (circa £0.5 trillion) is international.
We have a highly synergistic business model, which continues to drive strong returns. We are a leading international player in Institutional Retirement, in Retail Savings and Protection, and in both public and private markets through our Asset Management division. Across the Group, we are committed to responsible investing and dedicated to serving the long-term savings and investment needs of customers and society.
As at 7 June 2024, we estimate the Group’s Solvency II coverage ratio to be 224%.
As at 11 June 2024, Legal & General has a market capitalisation of £14.6 billion.
Institutional Retirement works with trustees and sponsoring companies of defined benefit (DB) pension schemes of all sizes to settle their pension obligations and secure scheme members’ benefits, through a full range of buy-ins, buyouts and other de-risking solutions. Our Client Services’ 12-month rolling Net Promoter Score (NPS) is above +70, which is widely regarded as being at a “world class” level. Legal & General is the UK’s longest-standing active bulk annuity provider.
Our UK Retirement annuity book stands at an estimated £86.1 billion at 31 December 2023. Across the group over £30 billion is invested in direct investments that deliver positive social and environmental impacts, such as clean energy and affordable housing. Legal & General provides income and pension security to more than a million retirement customers around the world.