26 Apr 2019

Legal & General completes c. £95 million buy-in with the 3i Group Pension Plan

Legal & General Assurance Society Limited (“Legal & General”) today announces that it has completed a c.£95 million buy-in with the Trustees of the 3i Group Pension Plan (“the Plan”).

The buy-in covers around 20% of the Plan’s liabilities for pensions already in payment. Together with the buy-in policy purchased with Pension Insurance Corporation (PIC) in 2017, approximately 60% of the Plan’s liabilities for pensions already in payment are now insured.

3i is a leading international investment manager focused on mid-market private equity and infrastructure. Its core investment markets are northern Europe and North America.

The Trustees were advised on the transaction by LCP and Linklaters. Legal advice was provided to Legal & General by Macfarlanes.

We are delighted to have supported the Trustees of the 3i Group Pension Plan on the next step of their de-risking journey. It was a pleasure to work with such an engaged group of trustees and their advisers, and to have developed a good working relationship with the Plan, enabling a smooth buy-in process.

This transaction is further indication of the strong continued demand for buy-ins and buy-outs, as we enter yet another potentially record-breaking year for this market.

Chris De Marco, Managing Director, UK Pension Risk Transfer, Legal & General

The Plan has been de-risking for a number of years, primarily moving our asset mix to favour bonds, as well as completing an initial pensioner buy-in with PIC.

The attractive pricing provided by Legal & General meant that an additional buy-in could be accommodated within the Plan’s long-term de-risking programme. We are very pleased to have been able to complete a second buy-in, which is a positive step towards further improving the long-term financial security of members’ benefits in the Plan. It also allows us to build good working relationships with two different insurers.

Carol Woodley, Chairman of Trustees