Press releases

Legal & General insures £600m of Pearson Pension Plan

The buy-in covers around 2,400 members of the Plan and helps the Trustee align its investments more closely with the pension benefits that the Plan is paying to members.

17 Oct 2017

The buy-in utilises an innovative “umbrella” contract structure that allows for further transactions to be completed quickly under existing contracts.

Chris DeMarco, Managing Director of UK PRT, said:

“The Pearson Pension Plan is a long standing client of Legal & General and we are delighted to have been selected as a buy-in partner for this next stage of the Plan’s de-risking journey. We look forward to continuing to build on our relationship with the Trustee and further supporting them in securing and protecting their members’ pensions.”

This latest transaction is another example of the strong momentum that we continue to see in the pension risk transfer market in both the U.K. and the U.S. In addition to the buy-in announced today, we have completed five transactions in the U.S. since the end of June for total premium of just over $120 million.

These transactions follow the strong first half of the year that we disclosed in our recent half year results which totalled £2.4 billion in pension risk transfer premiums and included buy-ins with The Plumbing & Mechanical Services (UK) Industry Pension Scheme and the Old Mutual Staff Pension Fund.

Kerrigan Procter, Chief Executive Officer, Legal & General Retirement, added:

“As trustee boards and sponsoring companies continue to improve scheme funding and manage down their risks, we are seeing demand for buy-ins, buyouts and longevity insurance grow. In the UK alone, we are currently quoting on circa £15 billion of pension buy-in and buyout business. While not every one of these opportunities will transact, it highlights the underlying strength that exists in the market and how increasing numbers of trustees are looking to us to help them deliver their members’ benefits.”

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.