Legal & General has completed a c.£900m buy-in transaction with the ICI Pension Fund. The deal secures the benefits of over 7,000 retirees.
This transaction – the 12th since the ICI Pension Fund entered into an umbrella agreement with Legal & General in 2014 – takes the total value to date to approximately £7bn, covering around 70% of the ICI Pension Fund’s total liabilities.
“We are pleased to have deepened our relationship with the ICI Pension Fund in the most recent transaction,” said Andrew Kail, CEO at Legal & General Retirement Institutional.
“It falls almost ten years to the day since the Fund’s initial ground-breaking transaction with us in 2014 and highlights how well advised pension schemes can achieve great results when they have a deep, collaborative, and trusted relationship with an insurer. We look forward to continuing to work closely with the Fund to secure its members’ pension liabilities,” Kail added.
“The Trustee of the ICI Pension Fund is delighted to have completed this further buy-in transaction with Legal & General. The Trustee values its ongoing relationship with Legal & General as it continues its journey to secure the benefits of all of the members of the ICI Pension Fund,” said Heath Mottram, Chief Executive at Pensions Secretariat Services Limited.
Lane Clark and Peacock and Allen & Overy have advised the trustee of the fund on all twelve of the fund’s buy-ins with Legal & General.
“In a busy market dominated by full buy-ins, this pensioner-only transaction shows how a well-prepared scheme with a de-risked investment strategy can successfully insure benefits over time to achieve its objectives. This transaction was the 12th buy-in for the Fund with L&G, almost 10 years to the day since the Trustee completed its initial record-breaking £3bn transaction with L&G in 2014,” said Clive Wellsteed, a Partner at Lane Clark & Peacock.
Macfarlanes provided legal advice to Legal & General.