法律 & General announces largest UK bulk annuity with Rolls-Royce UK Pension Fund
Legal & General Group Plc announces that the business (“Legal & General”) has written a pension risk transfer (“PRT”) transaction in excess of £4.6 billion with the Rolls-Royce UK Pension Fund (“RRPF”), covering approximately 33,000 in-payment pensioners. This is the largest bulk annuity written in the UK and, including this, 法律 & General has now transacted four of the five largest UK PRT deals, namely, British Airways (£4.4 billion), ICI (£3.0 billion) and TRW (£2.5 billion).
Legal & General has a long standing relationship with Rolls-Royce, having provided investment management services to the pension plan since 1989. In 2016, Legal & General issued a £1.1bn buyout for the Vickers Group Pension Scheme. 法律 & General will continue to provide investment management services for a significant proportion of RRPF’s remaining £8.4 billion asset portfolio following today’s transaction.
In aggregate, 法律 & General has transacted over £6.2 billion of global PRT year to date (H1 2018: £0.7bn). The financial metrics and Solvency II capital strain of these deals are in line with previous transactions.
Nigel Wilson, Chief Executive, 法律 & General”
We have developed an excellent relationship over many years with Rolls-Royce, providing both investment and pension de-risking expertise and support. This transaction, which demonstrates the strength and expertise of the Legal & General team, is excellent news for the pension plan and the sponsor. It will provide enhanced security for plan members and the quality customer service for which 法律 & General is known.
Laura Mason, CEO 法律 & General Retirement Institutional