Â£1bn longevity insurance contract arranged with Legal & General and the Trustee of the Pilkington Superannuation Scheme ('PSS').
09 January 2012
At the same time as entering into this agreement, Legal & General have also entered into a longevity reinsurance agreement with Hannover Re.
This transaction demonstrates Legal & General's capability in this rapidly growing market, as more companies and Trustees look to use insurance de-risking solutions to reduce their exposure to changes in future liabilities.
Tom Ground, Head of Business Development for Legal & General Pension insurance solutions, said; "Legal & General is delighted to have been chosen by the Trustee of the Pilkington Scheme for this important deal as it demonstrates our capability to provide a full range of de-risking solutions that delivers significantly enhanced security to members. The arrangement also reflects the Trustee and its advisers' commitment to work with a longevity insurance provider they believe has the expertise and financial security to deliver.
This transaction leverages Legal & General's expertise and buying power in the reinsurance market as one of the largest purchasers of life reinsurance.
This arrangement, which follows the recent £1.1bn buy-out deal with the T&N Scheme, further demonstrates Legal & General's ability to provide large-scale insurance solutions in the pension de-risking market. Legal & General continues to offer comprehensive de-risking solutions to pension schemes of all sizes." Ends
Notes to editors
- Source; Discounted using Libor swap curve as at 21 December 2011
- Legal & General is one of the UK's leading financial services companies and one of the UK's top 50 companies in the FTSE 100 Index. Legal & General has been an active participant in the insurance solution pension de-risking market for over 25 years and was this year's winner, along with LGIM, of the PIPA award for Best De-Risking provider. Legal & General provides annuities to over 550,000 current pensioners and over 200,000 deferred pensioners.
- Legal & General has expertise in investment management, all aspects of defined benefit provision as well as an in-depth understanding of mortality trends and longevity risk.
- The information contained in this release is intended solely for journalists and should not be used by consumers to make financial decisions.
- Legal & General Assurance Society Limited. Registered address: One Coleman Street, London EC2R 5AA. Registered in England No 166055.
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