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Legal & General agrees c.£47m buy-in with Universal Office Supplies Pension Scheme
Legal & General Assurance Society Limited (“Legal & General”) today announces it has agreed a c.£47 million buy-in with the Universal Office Supplies Pension Scheme (“the Scheme”), covering the benefits of over 175 deferred members and 85 retirees.
4 May 2022
The Scheme’s sponsor is Staples UK Limited (“the Sponsor”), formerly a nationwide provider of stationery and office supplies.
This transaction was agreed as part of a collaborative sole insurer process that followed from wider de-risking discussions with the Trustee in relation to this Scheme. This allowed the Trustees the flexibility to split the transaction into two parts to accommodate specific asset disinvestment timescales. The first c.£42 million buy-in took place in October 2021 and was followed by a further c.£5 million buy-in in January 2022.
The transaction forms part of the sale of the wider Group’s European business and the Trustee will now work with Legal & General towards its target of reaching buyout within set timeframes.
Mercer and Shoosmiths advised the Trustee on this transaction. Linklaters and Eversheds also provided Legal advice to the Sponsor and Legal & General, respectively.
Frankie Borrell, Head of Client Solutions, Legal & General Retirement Institutional: We remain committed to being a whole of market de-risking provider that delivers attractive solutions for pension schemes of all sizes. By working with us on a focused, sole insurer basis, the Scheme was able to benefit from the increased flexibility of a two-stage transaction.We are delighted with the outcome that the Scheme’s members will now have greater security for their retirement.
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.