Legal & General Group Plc Legal & General Retirement sales YTD are £6.7 bn (0254P)
14 November 2016 - 8:00AM
UK Regulatory
TIDMLGEN
RNS Number : 0254P
Legal & General Group Plc
14 November 2016
Rolls-Royce Buyout: Legal & General completes largest
pension buyout of 2016 with GBP1.1 billion Vickers Group Pension
Scheme
Legal & General Group Plc ("Legal & General") today
announced it has completed a GBP1.1 billion pension buyout for the
Vickers Group Pension Scheme, part of the Rolls-Royce Group,
covering over 11,000 members.
Legal & General Retirement sales year to date are GBP6.7
billion, with GBP6.3 billion in annuities and GBP0.4 billion in
lifetime mortgages. The decrease in the Group's Solvency II surplus
from new business regulatory capital strain is expected to be less
than GBP200m (circa 3% of premiums) for business year to date.
Kerrigan Procter, Managing Director of Legal & General
Retirement, said:
"We look forward to welcoming the 11,000 members of the Vickers
Group Pension Scheme to Legal & General. We are pleased to have
worked closely with the Scheme Trustees, their advisers Mercer, and
the Rolls-Royce Group to achieve a full buyout. Our relationship
with the Trustees has been a long-standing one, starting in 2007
with an LDI mandate to de-risk the Scheme and now culminating in a
full buyout. We are grateful for being able to play a part as the
Trustees, with patient and careful management, steered their way
through the financial crisis, recession, the consequences of QE and
latterly the outcome of the EU referendum before reaching the point
where buyout was appropriate and achievable for all Scheme
members."
Joel Griffin, Head of Pensions at Rolls-Royce said:
"This is a great testimony to the work of the Trustees and the
Company working collaboratively over many years to ensure that this
scheme is well funded with a prudent investment strategy to enable
this excellent outcome for former Vickers employees."
ends
For further information, please contact:
Investors:
Laura Doyle Head of Investor Relations 020 3124 2088
Sujee Rajah Investor Relations Manager 020 3124 2047
Media:
Richard King Head of Group Corporate Communications 020 3124
2095
Notes to editors:
Legal & General Group Plc:
1. Bulk annuities sales at H1 2016 were GBP3.6 billion. In May,
we acquired a GBP2.9 billion annuity back book from Aegon.
Following Brexit, we announced in July a GBP750 million pension
risk transfer deal with ICI, and by September sales were at GBP4.8
billion. On the completion of the Vickers Group Pension scheme,
sales year to date for pension risk transfer are at GBP6
billion.
2. Lifetime mortgage sales at H1 2016 were GBP231 million. In
July we signed a 5 year distribution agreement with Santander, and
by September sales were at GBP361 million. Year to date lifetime
mortgage sales are at GBP443 million.
3. Individual annuities sales at H1 2016 were GBP158 million. In
July we announced a 5 year distribution with Aegon. At September
sales were at GBP248 million, and year to date sales are at GBP300
million.
4. Established in 1836, Legal & General is a leading
provider of insurance, savings and investment management products
in the UK. The Group has a market capitalisation of GBP13.8bn (as
at 11(th) November 2016) and is responsible for investing
GBP841.5bn worldwide (as at 30 June 2016) on behalf of investors,
policyholders and shareholders.
5. Legal & General has over seven million customers in the
UK for life assurance, pensions, investments and general insurance
plans and over one million customers in the US who rely on us for
life assurance.
6. In 2015, Legal & General's operating profit (IFRS basis)
was GBP1,455m and adjusted earnings per share were 18.58p for the
period, an increase of 14% and 11% respectively. For H1 2016 Legal
& General's profit before tax was GBP826m, an increase of 23%,
adjusted earnings per share were 11.20p for the period, an increase
of 14%, and net cash of GBP727m, an increase of 16%.
For more information on Legal & General, please see
http://www.legalandgeneralgroup.com/
Forward-looking statements
This announcement may contain certain forward-looking statements
relating to Legal & General, its plans and its current goals
and expectations relating to future financial condition,
performance and results. By their nature, forward-looking
statements involve uncertainty because they relate to future events
and circumstances which are beyond Legal & General's control,
including, among others, UK domestic and global economic and
business conditions, market related risks such as fluctuations in
interest rates and exchange rates, the policies and actions of
regulatory and Governmental authorities, the impact of competition,
the timing impact of these events and other uncertainties of future
acquisition or combinations within relevant industries. As a
result, Legal & General's actual future condition, performance
and results may differ materially from the plans, goals and
expectations set out in these forward-looking statements and
persons reading this announcement should not place reliance on
forward-looking statements. These forward-looking statements are
made only as at the date on which such statements are made and
Legal & General Group Plc does not undertake to update
forward-looking statements contained in this announcement or any
other forward-looking statement it may make.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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