Legal & General Group PLC (LON:LGEN) has announced the completion of a £4.4 billion buy-in for BA’s pension scheme. Currently, BA’s pension scheme covers almost 22,000 pensions. This is the largest ever bulk annuity buy-in arranged with a UK pension scheme.
The UK pension risk transfer (PRT) market continues to demonstrate a high level of activity. Legal & General actively quote on over £20 billion. Over £7 billion of this figure was in exclusive negotiations at the time.
“Since then, Legal & General has completed £4.8 billion of UK PRT transactions, including the APS buy-in”, the company said. Additionally, it is now actively quoting on £27 billion of UK PRT deals.
On an international scale, Legal & General has completed £191 million of transactions since the end of June.
CEO of Legal & General Retirement Institutional, Laura Mason, said:
“This transaction also included the conversion of existing longevity insurance to a bulk annuity, demonstrating Legal & General’s ability to deal with a complex situation”
Moreover, Chief Executive of the Legal & General Group, Nigel Wilson, commented:
“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”
“we expect to announce further transactions in the next few months.”
At 11:35 BST, shares in Legal & General were trading at +0.66%.
