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Legal & General agrees c£370m buy-in with Heathrow’s BAA Pension Scheme
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.”
For more 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.