Legal & General delivers record bulk annuity transactions in first half of 2019
Legal & General had a successful first half of the year with over £6.6bn of global bulk annuity transactions between January and the end of June 2019, out of a publicly announced total market transaction level of £14bn. This compares to a 2018 global total of £735m for H1, £9.14bn for Full Year.
The H1 total for UK bulk annuity transactions was £6.3bn. In June, Legal & General agreed the UK’s largest bulk annuity transaction with a partial buyout in excess of £4.6bn with the Rolls-Royce UK Pension Fund. This follows the UK’s previous record-breaking bulk annuity transaction in September 2018, where Legal & General transacted a £4.4bn deal with the British Airways APS pension scheme.
Alongside billion-pound deals, Legal & General also continued to operate as a ‘whole of market’ provider and transacted a number of smaller deals in the first half of the year. It has completed 11 transactions under £100m this year, to 30 June 2019.
The market outlook is for UK bulk annuity volumes to exceed £30bn pounds for the first time and Legal & General expect to see the dynamic moving away from buy-ins to buyouts.
Laura Mason, CEO, Legal & General Retirement Institutional:"The bulk annuity market continues to show promising growth and we look forward to further delivering for our customers in the second half of the year, helping trustees secure their members’ pensions and companies to reduce their pensions risk, whilst ensuring that the long-term benefits promised to pension scheme members are fulfilled."
Further information
Margrit Williams
Director of External Engagement, Legal & General Capital
Notes to editors
Established in 1836, L&G 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 FY25) of which c. 43% (c. £0.5 trillion) is international. We have a highly synergistic business model, which continues to drive strong returns. We are a leading player in Institutional Retirement, in Retail Savings and Protection, and in Asset Management through both public and private markets. Across the Group, we are committed to responsible investing and dedicated to serving the long-term savings and investment needs of customers and society.