TIDMLGEN
RNS Number : 2989B
Legal & General Group Plc
06 June 2019
Legal & General announces largest UK bulk annuity with
Rolls-Royce UK Pension Fund
Legal & General Group Plc announces that the business
("Legal & General") has written a pension risk transfer ("PRT")
transaction in excess of GBP4.6 billion with the Rolls-Royce UK
Pension Fund ("RRPF"), covering approximately 33,000 in-payment
pensioners.
This is the largest bulk annuity written in the UK and,
including this, Legal & General has now transacted four of the
five largest UK PRT deals, namely, British Airways (GBP4.4
billion), ICI (GBP3.0 billion) and TRW (GBP2.5 billion).
Legal & General has a long standing relationship with
Rolls-Royce, having provided investment management services to the
pension plan since 1989. In 2016, Legal & General issued a
GBP1.1bn buyout for the Vickers Group Pension Scheme. Legal &
General will continue to provide investment management services for
a significant proportion of RRPF's remaining GBP8.4 billion asset
portfolio following today's transaction.
In aggregate, Legal & General has transacted over GBP6.2
billion of global PRT year to date (H1 2018: GBP0.7bn). The
financial metrics and Solvency II capital strain of these deals are
in line with previous transactions.
Nigel Wilson, Chief Executive, Legal & General, said:
"The Rolls-Royce transaction again demonstrates our extensive
strengths and synergies. We have a unique combination of pension,
actuarial and structuring expertise coupled with the capacity to
create and source long-term direct investments at scale. The global
PRT opportunity remains sizeable and compelling: only 8% of the
GBP2.2 trillion of UK DB pension liabilities and 5% of the $3.5
trillion in the US have completed PRT. Our pipeline and appetite
for further transactions in H2 remains strong."
Laura Mason, CEO Legal & General Retirement Institutional,
said:
"We have developed an excellent relationship over many years
with Rolls-Royce, providing both investment and pension de-risking
expertise and support. This transaction, which demonstrates the
strength and expertise of the Legal & General team, is
excellent news for the pension plan and the sponsor. It will
provide enhanced security for plan members and the quality customer
service for which Legal & General is known."
Liz Airey, Chair of Trustees, Rolls-Royce Pension Fund,
said:
"The Trustee is delighted to have achieved this outcome for our
members. The transaction will provide greater security and
certainty around the retirement benefits our members have been
promised. This has been made possible by careful risk management
over many years and a strong collaboration between the Trustee,
Rolls-Royce and our advisers."
Notes to editors
Legal & General Group Plc
Established in 1836, Legal & General is one of the UK's
leading financial services groups and a major global investor, with
international businesses in the US, Europe, Middle East and Asia.
With over GBP1 trillion in total assets under management, we are
the UK's largest investment manager for corporate pension schemes
and a UK market leader in pension risk transfer, life insurance,
workplace pensions and retirement income. As at 5 June 2019, Legal
& General has a market capitalisation of GBP15.6 billion.
Legal & General Retirement Insitutional works with trustees
and sponsoring companies of Defined Benefit (DB) Pension Schemes to
settle their pension obligations and secure scheme members'
benefits, through a full range of risk transfer solutions to
pension schemes of all sizes.
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
acquisitions 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 does not undertake to update forward-looking
statements contained in this announcement or any other
forward-looking statement it may make.
Further information
Investors
Edward Houghton Head of Investor Relations +44 (0)20 3124
2091
Alyssa Manning Investor Relations Director +44 (0)20 3124
2047
Sujee Rajah Investor Relations Director +1 312 964 3034
Media
John Godfrey Corporate Affairs Director +44 (0)20 3124 2090
Margrit Williams PR & Communications Director, Legal &
General Retirement +44 (0)20 3128 1299
Graeme Wilson Tulchan Communications +44 (0)20 7353 4200
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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