Legal & General strikes £4.4 bn UK bulk annuity deal
Legal & General Group has completed a £4.4 billion buy-in for British Airways pension scheme, Airways Pension Scheme (APS).
The transaction covers nearly 22,000 pensioners. It is the largest ever bulk annuity policy arranged with a UK pension scheme and also included the conversion of existing longevity insurance into a bulk annuity, according to the insurer.
The UK pension risk transfer (PRT) market continues to demonstrate a high level of activity with Legal & General actively quoting on more than £20 billion, of which more than £7 billion were in exclusive negotiations at the time, according to a corporate statement.
“As we indicated at the half year results, the second half of 2018 is likely to be a record six months for our PRT business and we expect to announce further transactions in the next few months,” said CEO Nigel Wilson.
“We are actively quoting on £27 billion of UK PRT deals demonstrating the strong demand for insurance, supported by increasing affordability, as trustees seek to improve security for members and companies look to remove legacy liabilities,” Wilson added.
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