Legal & General completes bulk annuity deal with Maersk scheme

Transaction worth £1.1 billion

Legal & General completes bulk annuity deal with Maersk scheme

Insurance News

By Terry Gangcuangco

The trustee of the Maersk retirement benefit scheme has secured the benefits of around 1,900 deferred members and 3,000 retirees through a bulk annuity transaction with Legal & General Assurance Society Limited.

“This is good news for scheme members,” said trustee chair Nigel Pusey. “After many years of careful management and de-risking, we have now secured our members’ benefits through a buy-in with Legal & General. We were impressed with the flexibility and professionalism shown by Legal & General, alongside our advisers, to complete the transaction at a challenging time.

“We are very happy to have formed this partnership with Legal & General, which is an important next step in the scheme’s de-risking journey and improves the security of benefits for all members.”

The agreed deal is worth £1.1 billion.

Commenting on the transaction, Legal & General Retirement Institutional chief executive Laura Mason noted: “We are delighted to have been chosen by the trustee as its de-risking partner and to provide long-term security for all of the scheme’s members.

“As one of the larger pension risk transfer transactions of 2020, [this] announcement demonstrates the resilience of the market and the ability of insurers, such as ourselves, to transact amid a challenging economic environment.”

Mason added that it allows Legal & General to continue providing wider benefits for the UK economy as the company invests responsibly in areas such as affordable housing, renewable energy, and transport.

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