Legal & General Assurance Society Limited (“Legal & General”) today announces that it has agreed a c.£110 million buy-in transaction with the CAA Section of the Civil Aviation Authority Pension Scheme (CAAPS) (“the Scheme”).
9 Mar 2021
This transaction marks the Scheme’s first Pension Risk Transfer (PRT) transaction with Legal & General and has been established as an umbrella contract, to enable smooth facilitation of any future transactions.
The Scheme has a long-standing relationship with Legal & General, as Legal & General Investment Management (“LGIM”) has managed various CAAPS assets for more than 30 years.
The Trustee was advised on the transaction by Aon and legal advice was provided by Reed Smith. Legal advice was provided to Legal & General by CMS.
Gavin Smith, UK Head of Pricing and Execution, Legal & General Retirement Institutional: "I am pleased we were able to secure the pension benefits for a long-standing Legal & General client. We look forward to working closely with the Civil Aviation Authority Pension Scheme Trustee as they continue to insure the Scheme’s remaining pension liabilities. Providing umbrella contract solutions enables pension schemes to continue moving effectively and strategically, to complete their de-risking journeys, when favourable conditions arise."
Established in 1836, Legal & General is one of the UK's leading financial services groups and a major global investor, with over £1.2 trillion in total assets under management* of which 39% is international. We have a unique and highly synergistic business model, which continues to drive strong returns. Legal & General provides powerful asset origination and management capabilities directly to clients, which also underpin our leading retirement and protection solutions. We are a leading international player in Pension Risk Transfer, in UK and US life insurance, and in UK workplace pensions and retirement income. Our purpose is to improve the lives of our customers and create value for our shareholders. Through inclusive capitalism, we are investing in long-term assets, such as real estate and infrastructure, that can help build a better society for the future.
*as at HY 2023
Legal & General Retirement Institutional (LGRI) 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 £72.6 billion as at 30 June 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.
*as at HY 2023