The transaction is said to secure the benefits of almost 1,900 deferred members and 3,000 retirees
Legal & General Assurance Society has agreed to a £1.1bn bulk annuity deal with the Trustee of the Maersk Retirement Benefit Scheme, sponsored by Danish shipping company Maersk.
The deal will secure the benefits of nearly 1,900 deferred members and 3,000 retirees, said the subsidiary of financial services provider Legal & General Group (L&G).
According to Legal & General, the Trustee of the Maersk Retirement Benefit Scheme had taken various measures in recent years to de-risk the scheme, which included the full hedging of its interest rate and inflation exposures.
Legal & General said that this approach had put the scheme in a strong position to withstand the recent volatilities in the market, besides taking advantage of an opportunity to further de-risking by signing the buy-in annuity deal.
Legal & General retirement institutional CEO Laura Mason said: “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.
“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.”
The deal with Maersk Retirement Benefit Scheme follows L&G’s £385m buy-in transaction with the Northern Gas Networks Pension Scheme, which was announced earlier this month.
The transaction is said to have secured the pension benefits of more than 600 retirees of England-based gas distributor Northern Gas Networks.