Legal and General announced it has completed a £650m buy-in with the trustees of the 3i group pension plan.
The agreement will provide a policy, in respect of the plan, which will match the benefits of around 280 pensioners and 570 deferred members.
It follows on from the two pensioner buy-ins previously undertaken by the trustees, with both the Pension Insurance Corporation in 2017 and Legal and General in 2019, and means that the pension plan is now fully insured through buy-in policies.
Legal & General and the 3i group pension plan have had a relationship for over 15 years, with Legal & General Investment Management Limited providing investment support to the plan since 2004.
The Trustees were advised by LCP, Linklaters and Lincoln Pensions and have consulted with 3i Group throughout the process.
The 3i group, which was advised by Mercer and Slaughter and May, said that it is “fully supportive” of the buy-in transaction. Legal advice was provided to Legal & General by Macfarlanes.
Laura Mason, CEO of Legal and General Retirement Institutional, said: “We are delighted to have continued our partnership with the 3i Group Pension Plan and help complete the final step of its de-risking journey, providing a solution that ensures the long-term benefits promised to its members are fully secured.
“The successful conclusion of this transaction demonstrates the resilience and continued growth of the bulk annuity market and our sustained activity across all levels of transactions.”
Carol Woodley, chair of trustees, said: “This transaction is a significant step forward in providing a more certain and secure solution for members’ future benefits and removes significant risks in the plan that would otherwise be difficult to hedge.
“Achieving this level of security is especially valuable in the current economic climate and we are delighted that, with the support of our advisers, we have been able to take this step sooner than previously anticipated.”