Legal & General (L&G) have entered into a longevity insurance transaction with the Pilkington Superannuation Scheme. The deal covers L&G for the “risk of 11,500 current pensioners in the Scheme living longer than expected”, and includes around £1 billion in associated liabilities.
The company also announced their relevant reinsurance agreement with Hannover Re in respect of this scheme.
The deal comes after the recent £1.1billion buy-out with the Turner & Newall pension scheme in October 2011. These transactions coupled with the growth of Liability Driven Investment transactions demonstrate Legal & General’s ability to provide pension de-risking solutions across a wide customer base.
Tim Breedon, Group Chief Executive, said, “In the UK and globally, the pension fund de-risking market will continue to grow as pension funds look to further de-risk. In 2011 we completed our first £1 billion pension buy-out, and today we have announced our first ever longevity insurance swap. These transactions leverage our expertise in investment management and longevity risk pricing, and I see us remaining at the forefront of this rapidly developing pensions market.
“Legal & General can provide comprehensive de-risking solutions, including buy-out, buy-in, longevity insurance and liability driven solutions to pension schemes of all sizes.”
