The bulk annuity deal offers a policy regarding the 3i Group Pension Plan, which matches the benefits of nearly 280 pensioners and 570 deferred members
Legal & General completes £650m bulk annuity transaction with 3i Group Pension Plan. (Credit: Legal & General Group Plc)
Legal & General Assurance Society, a subsidiary of financial services provider Legal & General Group, has wrapped up a £650m bulk annuity deal with the trustees of the 3i Group Pension Plan.
3i Group is a global investment manager, which focuses on mid-market private equity and infrastructure. The group’s core investment markets are northern Europe and North America.
The bulk annuity deal offers a policy regarding the pension plan, which matches the benefits of nearly 280 pensioners and 570 deferred members.
The 3i Group Pension Plan is now fully insured
The transaction follows the two pensioner buy-in deals that were carried out in the past by the trustees with Pension Insurance in 2017 and Legal & General last year. As a result, the means the pension plan is now completely insured via buy-in policies held as assets of the plan.
Legal & General retirement institutional CEO Laura Mason 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.”
According to Legal & General, the final bulk annuity deal has been achieved without depending on the sponsoring company, 3i Group, for any further contribution.
Since 2004, Legal & General Investment Management is said to have been providing support to the plan.
3i Group Pension Plan trustees chair Carol Woodley 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.”