Legal & General today announced that it has simultaneously agreed two pension risk transfer (“PRT”) transactions with IHS Markit – one in the UK and another in the US.
13 May 2020
The pension schemes covered are IHS (Global) Ltd. Pension and Life Assurance Scheme in the UK and IHS Retirement Income Plan in the US.
The UK transaction was for £37.8m ($46.7m), covering around 150 members, and the US transaction was for $97.2m (£78.4m), covering around 1,200 members.
Both transactions demonstrate the continued appetite for PRT in the UK and US. Legal & General today confirmed that it had completed seventeen bulk annuity transactions in the UK and US as at 30 April 2020, securing a total of £1.4bn ($1.7bn) of pensioner and deferred members’ benefits, including today’s announced transactions. This builds on the recently announced 2019 results published by Legal & General Group: £10.3bn of UK PRT transactions in 2019 and $1.1bn of PRT business in the US for 2019.
Laura Mason: "We are delighted to have been able to work with IHS Markit and the Trustees to agree an exciting first for our team – a globally coordinated transaction to simultaneously insure pension liabilities in both the UK and the US. Legal & General is uniquely placed to offer global market-leading pension risk transfer services. This announcement demonstrates our ability to work seamlessly across both markets at the same time."
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.