Legal & General completes £370 million buy-in with the TUI Group UK Pension Trust
Legal & General Assurance Society Limited (“Legal & General”) has completed a £370 million buy-in with the BAL section of the TUI Group UK Pension Trust (“the Scheme”).
This buy-in, which was completed in late 2024, follows an initial £610m transaction in 2021 and now means all section benefits are fully secured.
The sponsoring employer, TUI UK (“the Sponsor”), is a leisure, travel, and tourism company.
Following the initial transaction, the Trustee worked collaboratively with Legal & General to monitor pricing for a period of 18 months and ensured they were in a position to react to favourable market conditions and transact at an opportune time. This ensured an efficient transaction while affordability remained attractive.
c£30m of the premium has also been deferred to allow the Scheme to run-off some illiquid assets and is payable over the next two years.
Overall, the Scheme has now completed three transactions with Legal & General, having also completed a £184 million full buy-in for the TAPS section of the Scheme.
LCP was the lead transaction adviser to the Trustee and also provided actuarial and investment advice. Linklaters provided legal advice to the Trustee. Isio and Herbert Smith Freehills provided advice to the Sponsor, and Macfarlanes provided legal advice to Legal & General.
Adrian Somerfield, Director, Institutional Retirement, Legal & General: “We are pleased that the Trustee has chosen to secure all section benefits with us. Working collaboratively with the Trustee, Sponsor and their advisors, we helped implement an efficient solution for the Scheme’s illiquid investments and now look forward to supporting the members over the long term.”
Mike Roberts, PAN Trustees Partner, Chair of Trustee: “Securing the benefits for our members has been the aim of the Trustee for many years, and we are delighted to have achieved another successful transaction. This is a prime example of how collaboration between all parties can get the best outcome for members of the Scheme.”
Imogen Cothay, Partner, LCP: “This latest transaction represents a significant milestone, with all members’ benefits in the section now insured in full. Having advised the Trustee since 2011, it has been a pleasure to support the Trustee in its collaboration with TUI UK to develop and implement a long-term plan for the Scheme, and to have seen this achieved so successfully.”
Nick Dunk, Group Pensions Manager, TUI: “Following a collaborative process working with the Trustee, we are pleased to have completed a further transaction in respect of the Trust as part of our de-risking journey. We have now worked to fully insure the liabilities of two Sections of the Trust which provides further security for both members and TUI.”
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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.
Institutional Retirement works with trustees and sponsoring companies of defined benefit (DB) pension schemes of all sizes to settle their pension obligations and secure scheme members’ benefits, through a full range of buy-ins, buyouts and other de-risking solutions. L&G is the UK’s longest-standing active bulk annuity provider and our total annuity book stands at an estimated £96 billion as at HY25. L&G provides income and pension security to more than a million retirement customers around the world.