Announcement marks the Fund’s ninth transaction with Legal & General
13 Aug 2020
Legal & General Assurance Society Limited (“Legal & General”) announces that it completed a £70 million buy-in in May with the ICI Pension Fund (“the Fund”), taking advantage of favourable market conditions to secure the benefits of new retirees since its previous transaction with Legal & General in 2019.
This buy-in marks the Fund’s ninth transaction with Legal & General, securing a total of c£5.8 billion of liabilities. The Fund entered into its first buy-in arrangement with Legal & General in 2014, and established an innovative umbrella contract to facilitate further transactions, as part of the Fund’s long term strategic de-risking plan.
Legal & General approached the Trustee earlier in the year as market volatility presented a favourable pricing opportunity. The umbrella contract structure and the Trustee’s clear decision making framework allowed the Fund to move quickly to take advantage of this. This collaborative approach and structure had been used for previous transactions to take advantage of favourable market conditions, notably the £750 million buy-in in July 2016,
completed within two weeks of the EU referendum result.
Please find full press release below
Dominic Moret, Origination & Execution Director, Legal & General Retirement Institutional: "We are pleased to be able to continue to support the ICI Pension Fund on its long term de-risking journey. Today’s announcement adds to a relationship that has already secured a significant proportion of the Fund’s liabilities – larger than any single buy-in transaction in the market. This latest transaction demonstrates how an umbrella contract structure and a collaborative working relationship can benefit all parties if trustees are set up to react to favourable pricing opportunities during times of market volatility."
Notes to editors
Established in 1836, Legal & General is one of the UK’s leading financial services groups and a major global investor, with international businesses in the US, Europe, Middle East and Asia. With almost £1.3 trillion in total assets under management*, we are the UK’s largest investment manager for corporate pension schemes and a UK market leader in pension risk transfer, alternative asset origination, life insurance, workplace pensions and retirement income. Through inclusive capitalism, we aim to build a better society by investing in long-term assets that benefit everyone.
* at 30 June 2021