The transaction with the Siemens Benefits Scheme is said to have secured the benefits of over 2,000 UK retirees, said Legal & General Assurance Society
Legal & General completes £530m PRT transaction with Siemens Benefits Scheme. (Credit: Legal & General Group Plc)
Legal & General (L&G) Assurance Society, a subsidiary of financial services provider Legal & General Group, has wrapped up a £530m buy-in deal for the Siemens Benefits Scheme.
The transaction is said to have secured the benefits of over 2,000 UK retirees, said the UK-based insurance company.
The buy-in is the first pension risk transfer (PRT) transaction for the scheme with the company and builds on a previously carried out deal completed about two years ago.
Legal & General retirement institutional pricing and execution director Gavin Smith said: “This transaction represents another key de-risking step for the Siemens Benefits Scheme and we are delighted to provide further security to the Trustees and their members.
“Legal & General have been working with the Scheme for many years and Legal & General Investment Management Limited helped to set up the liability-driven investment portfolio in 2008.”
Siemens Benefits Scheme selected an umbrella contract
The scheme is said to have decided to select an umbrella contract to facilitate possible transactions in the future to be quickly and easily closed when the time and market conditions are appropriate.
The trustees of the Siemens Benefits Scheme are said to have undertaken an agile and flexible process, enabling them to take advantage of favourable pricing opportunities in the market, and to quickly move to meet their goals, said Legal & General.
Siemens Benefits Scheme trustee chair Joanna Matthews said: “I am delighted that we have been able to complete another key step in the Trustee’s de-risking journey. Through careful planning, we were able to overcome the logistical and investment challenges posed by Covid-19 and complete this transaction at this time on very favourable terms.”
Aon and Sackers advised the trustees of the scheme on the buy-in deal and for Legal & General, the legal advice was given by Eversheds.
Last week, Legal & General Assurance Society completed a £70m buy-in transaction with the ICI Pension Fund, thereby securing the benefits of new retirees since their previous deal in 2019.