British insurance giant Legal & General has completed a £230 million pensioner buy-in transaction with Howden Group.
The pensions risk transfer (PRT) deal features the nearly 2,000 pensioner and deferred members of the Howden Group Pension Plan. According to the announcement, around two-thirds of that number are current pensioners.
Howden Group, a global engineering business that provides air and gas handling solutions, was established in Scotland in 1854.
“The Howden Plan is a long-standing client of Legal & General Investment Management (LGIM) and we are delighted to have been able to help the trustees take the next step in their de-risking journey by completing this transaction,” stated Chris DeMarco, managing director of UK PRT at Legal & General Retirement Institutional.
“Through a close collaborative relationship with the trustees and their advisers, we were able to deliver a solution which mirrored some of the plan’s more complex details, while providing the reassurance of the strength, experience, and client service capabilities of Legal & General.”
Trustees chairman Crawford McLean, meanwhile, commented that they are happy to have been able to provide long-term assurance to members by removing the plan’s longevity risk exposure through the transaction. He said insuring the benefits was “the next logical step” following funding improvements.
“The trustees also liaised closely with Legal & General to develop the best solution for our members and to improve the security of their benefits,” noted McLean. “We look forward to continuing to work together as Legal & General assumes responsibility for paying our members’ benefits.”