Life Insurance

Legal & General announces $512 million buy-in transaction

The Northern Gas Networks (NGN) Pension Scheme has secured the pension benefits of over 600 retirees, or around two-thirds of its members, via a £385 million (approx. $512 million) Aon-brokered buy-in deal with Legal & General Assurance Society Ltd.   

“We are delighted to have completed this transaction, which provides further financial security to the members of the Northern Gas Networks Pension Scheme,” said Rachel Cutts, origination & execution director, Legal & General Retirement Institutional.

“This transaction demonstrates that by having a clear objective and flexible timescales, trustees can move quickly and secure their members’ benefits when favorable pricing is available. It builds on the Legal & General Group’s existing relationship with the scheme, and we look forward to continuing to work with the scheme in the coming years.”

A proportion of the scheme’s assets has been managed by Legal & General Investment Management since 2005. The transaction, meanwhile, is the scheme’s first buy-in policy.

It was noted that NGN and the trustee were able to take advantage of favorable market conditions. Legal & General implemented a price lock while the legal agreement was being progressed, giving the trustee a high degree of price and execution certainty prior to deal completion.

Trustee chair Catherine Edmondson commented: “I am delighted that we have been able to take this important step to reduce risk in the scheme and increase member security. Thank you to the trustee, NGN, and our advisers for all of their hard work which allowed us to move quickly when the opportunity arose to secure an attractive transaction.”

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