Legal & General Assurance Society Limited (“Legal & General”) today announces that it has agreed a buy-in transaction with the Sleepeezee Retirement Benefits Plan 1975 (“the Plan”), totalling £18 million and securing the benefits of around 200 retired and deferred members.
18 Apr 2023
The sponsoring company, Sleepeezee Holdings Limited, is a leading UK manufacturer of mattresses; it celebrates 100 years of business next year.
The Plan is a longstanding client of Legal & General Investment Management (“LGIM”). The Trustees carried out work in preparation for this transaction, including aligning the Plan’s assets more closely with expected insurance pricing by transitioning into LGIM buy-out aware funds.
The Trustees and sponsoring company appointed PwC as specialist adviser for the transaction and legal advice was provided to the Trustees by Hogan Lovells.
Rebecca Otter, Legal & General Retirement Institutional (LGRI): “Legal & General provides bespoke solutions to pension plans of all sizes and we’re delighted to have completed this buy-in. The key for smaller schemes entering the market is to ensure they are well prepared. The preparation the Trustees had carried out, combined with our streamlined approach, meant we were able to price the Plan quickly, making the process seamless and straightforward. It was great to work alongside an existing client of Legal & General to secure a transaction that protects the benefits of all members of the Plan.”
Giles Orton, Trustee Chair: “I am delighted to have completed this buy-in, which will provide greater security for members’ benefits in the Plan. I want to thank all of our advisers for helping us through this journey, including PwC who helped us navigate a busy market for a relatively small scheme. I am also grateful for the support the Company has provided throughout the Plan’s journey to this point; we have worked collaboratively throughout to achieve a great outcome.”
Sam Whalley, Lead Risk Transfer Advisor at PwC: “As lead advisor to both Company and Trustee, and in a market that is busier than ever before, we worked closely with Legal & General to find capacity to obtain the buy-in quotation at the right time. We were also able to help structure the sponsor financing which allowed the Trustee to secure the buy-in, as well as allowing the Company to continue to invest in the business. Through the use of the LGIM buy-out aware funds, we were able to support the Trustee to achieve a level of price certainty during the execution phase that is rare for the scheme of this size.”
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