When a pension scheme completes a buyout with us, a remarkable chain of events occurs. Not only do the trustees better secure and protect their members’ benefits, the liabilities transfer from the sponsoring company’s balance sheet to us, thereby putting the company in a better, more sustainable position to capture future growth.
What is often missed, however, is that we will take the premium that is paid to us and invest it in order to back the pension promises that we are now responsible for keeping. We'll invest in corporate bonds and increasingly in large scale infrastructure projects and by doing so, provide financing to companies across the UK and help build the infrastructure that will be the foundation of our future economic growth.
In this way, the savings of the older generations are being used to finance the economic growth of the younger generations and this virtuous cycle gets repeated each time a pension scheme transfers risk to us.
These are examples of how we use pension funds to help boost the UK’s economy.
Newcastle Science Central
Partnering with Newcastle City Council and Newcastle University on the £350 million Newcastle Science Central, one of the biggest urban regeneration projects of its kind in the UK. The 24-acre science and technology hub is set to create over 4,000 jobs, 500,000 square feet of office space and 450 new homes.
Legal & General Modular Homes
The launch of our modular housing business, Legal & General Modular Homes, which will seek to modernise the home building industry by providing modern, precision-engineered, factory-manufactured through our new factory in Sherburn-in-Elmet, 15 miles east of Leeds. Over 400 jobs are being created in the Leeds area.
UK investments projects
Including £53 million committed to the Dover Regeneration project, £250 million investment in DP World’s London Gateway Port and the purchase of the Transport for London (TfL) Building at the International Quarter in Stratford for £245 million.