The BP Pension Fund has completed a £1.6bn bulk purchase annuity buy-in transaction with Legal & General.
The deal was the first pension risk transfer transaction for the c.£18bn fund; L&G provided a gilt-based price lock using the fund’s gilt holdings.
“This buy-in follows a detailed review of the options available to support the Fund’s de-risking journey and hence the security of members’ accrued benefits. On behalf of the board, I’d like to thank L&G for their collaboration throughout our journey from initial exploration to concluding this transaction, and our advisers for their support,” said Brendan Nelson, Chair of Trustee.
“We are delighted to have completed this buy-in with the Fund, which supports the Fund’s Trustee in its management of risk. A huge thanks to everyone involved for their hard work on the transaction, and to the Trustee for its positive engagement during a thorough selection and implementation process,” added Andrew Kail, CEO, Institutional Retirement at L&G.
The trustee was advised by Aon as lead transaction adviser, with Linklaters providing legal advice and Cardano providing insurer covenant advice. Mercer acted as scheme actuary with Redington providing strategic investment advice to the Trustee. Macfarlanes and DLA Piper provided legal advice to L&G.