Pensions - Articles - L&G: Further £750m pension risk transfer transaction for ICI

 Legal & General Retirement sales year to date across bulk annuities, individual annuities and lifetime mortgages are £4.75 billion, (£4 billion in H1 2016 compared to £2.9 billion in H1 2015).

 Legal & General has now executed bulk and individual annuity business in 2016 of £4.5 billion year to date, compared to the 2015 full year annuity sales of £2.7 billion. This is partly made up of the £2.9 billion Aegon back-book transaction in May, and £250 million of pension risk transfer business conducted in June during the Referendum period.

 Legal & General and ICI PF executed the £750 million pension risk transfer deal shortly after the EU Referendum, working together quickly to make good use of market opportunities. ICI PF has now executed £5 billion in pension risk transfers with Legal & General since 2014.

 Large pension funds are moving towards an incremental approach to pension risk transfer. Pensioner buy-ins, top-slicing and longevity insurance are all becoming steps in this incremental approach and so allow insurers and pension schemes to form mutually helpful strategic relationships.

 Commenting on the latest transaction, Cheryl Agius, Head of Strategic Pension Risk Transfer, Legal & General Retirement said: “The strength and depth of our relationship with ICI Pension Fund enabled us move fast when the market opportunity presented itself. The result is a further step forward in the de-risking programme which we are helping the ICI Pension Fund Trustees to deliver for their scheme members.”