Legal & General Assurance Society Limited (“Legal & General”) today announces that it has agreed a c£370 million buy-in with London Heathrow’s BAA Pension Scheme (“the Scheme”), securing the benefits of more than 1,400 retirees.
10 Feb 2022
The Sponsoring company, Heathrow Airport Limited, runs London Heathrow Airport, one of the world’s busiest airports and a vital global transport hub.
Today’s buy-in represents the Scheme’s second Pension Risk Transfer (“PRT) transaction with Legal & General, following a £325 million buy-in in 2018 covering 1,300 retirees. Legal & General has now secured the benefits of nearly 3,000 members of the Scheme, demonstrating its commitment to a long-term relationship with the Trustee.
An umbrella contract has been established as part of the transaction, enabling the Trustee to potentially insure further liabilities quickly and easily as it continues its de-risking plans.
The Scheme is an existing client of Legal & General, having established a partnership with Legal & General’s Investment Management business (“LGIM”) to manage the Scheme’s assets in 2020.
The Trustee was advised on the transaction by LCP and legal advice was provided to the Trustee by CMS. MacFarlanes provided legal advice to Legal & General.
Adrian Somerfield, Director, Legal & General Retirement Institutional: “Having built trust and a strong relationship with the Trustee over a number of years, we are delighted to have secured the retirement benefits for another 1,400 members.
Our umbrella contract ensures we are able to move forward with the Trustee in a swift and effective manner as they continue their de-risking plans.”
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.
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. Including the premium to be received in relation to this transaction, LGRI has annuity assets estimated at £63bn.