Legal and General has announced it has agreed to a £1.1bn bulk annuity transaction with the trustee of the Maersk Retirement Benefit Scheme.
This deal will secure the benefits of around 1,900 deferred members of the scheme, as well as 3,000 retirees.
Over the last few years, the trustee has worked towards de-risking the scheme, including fully hedging its interest rate and inflation exposures.
After these changes, the scheme is believed to be in a “strong position” to weather recent market volatility and take advantage of an opportunity to further de-risk by entering into a buy-in transaction with the insurance giant.
Laura Mason, CEO of Legal & General Retirement Institutional, said: “We are delighted to have been chosen by the trustee as its de-risking partner and to provide long-term security for all of the Scheme’s members.
“As one of the larger pension risk transfer transactions of 2020, today’s announcement demonstrates the resilience of the market and the ability of insurers, such as ourselves, to transact amidst a challenging economic environment.”
She added: “It also allows us to continue providing wider benefits for the UK economy as we invest responsibly in crucial areas, such as affordable housing, renewable energy and transport – benefitting our cities, future generations and society as a whole.”