Legal & General Assurance Society Ltd (“LGAS”) today announces that it has agreed a c.£420m full scheme buy-in with the Commonwealth Bank of Australia (UK) Staff Benefits Scheme (“the Scheme”).
8 Jul 2021
This transaction covers all of the Scheme’s defined benefit members (approximately 440 non-retired members and 740 retirees). It represents a significant step on its planned de-risking journey. The Scheme has been a client of Legal & General Investment Management (LGIM) for the last 12 years, enabling them to efficiently lock pricing to their LGIM assets ahead of transacting.
The Scheme’s sole Trustee is Capital Cranfield Pension Trustees Limited. They were advised in the transaction by LCP, acting as specialist de-risking adviser to the Trustee, with CMS providing legal advice to the Trustee, and Mercer acting as administrator and Scheme Actuary. Slaughter and May provided legal advice to Legal & General.
Dominic Moret, Head of Origination and Execution, Legal & General Retirement Institutional: "It was a great pleasure to work with the Trustee, the Sponsor and their advisers on this transaction, after a longstanding investment management relationship. We are delighted to welcome the Commonwealth Bank of Australia’s scheme members to Legal & General as we support the Scheme in providing further certainty to them."
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.