Press release

Legal & General completes £4.4 billion bulk annuity buy-in with British Airways

Legal & General Group Plc (“Legal & General”) today announces that it has completed a £4.4 billion buy-in for British Airways PLC’s pension scheme, Airways Pension Scheme (“APS”), covering nearly 22,000 pensioners. This is the largest ever bulk annuity policy arranged with a UK pension scheme and also included the conversion of existing longevity insurance into a bulk annuity.

13 Sept 2018

Press Release (PDF 148KB)Investors homepage

As announced at the half year results, the UK pension risk transfer (“PRT”) market continues to demonstrate a high level of activity with Legal & General actively quoting on more than £20 billion, of which more than £7 billion were in exclusive negotiations at the time. Since then, Legal & General has completed £4.8 billion of UK PRT transactions, including the APS buy-in, and is now actively quoting on £27 billion of UK PRT deals. Additionally Legal & General has continued to show strong momentum in International PRT, completing £191 million of transactions since the end of June.

In aggregate, Legal & General has completed £6.0 billion of global pension de-risking transactions year to date (UK PRT: £5.3 billion, International PRT: £0.4 billion, Longevity Insurance: £0.3 billion). The financial metrics and Solvency II capital strain of these transactions are in line with previous levels reported by Legal & General.

Laura Mason, CEO Legal & General Retirement Institutional: "This transaction also included the conversion of existing longevity insurance to a bulk annuity, demonstrating Legal & General’s ability to deal with a complex situation and offer innovative solutions drawing on the broad experience and capabilities of the wider Legal & General Group."

Nigel Wilson, Chief Executive, Legal & General Group: "As we indicated at the half year results, the second half of 2018 is likely to be a record six months for our PRT business and we expect to announce further transactions in the next few months."

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 HY24) 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.

Related content

Press release

Homeowners could nearly double their retirement savings by combining pensions and property wealth

For older homeowners, property wealth could help to boost the amount of money available to fund their retirement.

Photograph of Golden Square in London W1

Press release

Legal & General Managed Fund continues acquisitions with prime London West End office asset

This latest deal marks £370 million of acquisitions so far this year for the fund, demonstrating strong momentum and improving investor sentiment.

Press release

L&G launches 25 rent-free retail units below flagship London BTR scheme supporting independent businesses

Legal & General (L&G) has today announced the creation of UK’s first new-build independent neighbourhood, offering over 25 independent retailers their first year rent-free in efforts to breathe life into the high street and champion independent businesses and entrepreneurship.