Pilkington Group and the trustee of the Pilkington Superannuation Scheme ('PSS') has agreed to a longevity insurance arrangement with Legal & General Assurance Society, in a move to use insurance de-risking solutions to reduce exposure to changes in future liabilities.
The deal insures against the risk of 11,500 current pensioners in the Scheme living longer than expected, with around £1bn of associated liabilities.
The transaction also leverages Legal & General’s expertise and buying power in the reinsurance market and follows the recent £1.1bn buy-out deal with the T&N Scheme.
Legal & General Pension insurance solution Head of Business Development Tom Ground said that it demonstrates their capability to provide a full range of de-risking solutions that delivers significantly enhanced security to members.
Legal & General have also entered into a longevity reinsurance agreement with Hannover Re.