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Bloomberg
Legal & General Group Plc completed a $5.7 billion buy-in with the British Airways pension scheme in what it says is the largest-ever deal of its kind in the UK.
The deal covers almost 22,000 pensioners and it includes the conversion of existing longevity insurance into a so-called bulk annuity. The company expects to announce further transactions in the coming months, according to L&G CEO Nigel Wilson.
Legal & General expects to play an active role in the pension risk-transfer market, in which a defined-benefit plan sells some or all of the risk to another party. The company said it has completed more than 4.8 billion pounds of such transactions in the UK since announcing its half-year results. “The second half of 2018 is likely to be a record six months for our PRT business,†Wilson said. “We are actively quoting on 27 billion pounds of UK PRT deals, demonstrating the strong demand for insurance, supported by increasing affordability.â€