Pilkington in £1bn longevity deal with Legal & General
The trustee of the Pilkington Superannuation Scheme has insured against the risk of 11,500 current pensioners in the scheme living longer than expected, with around £1bn of associated liabilities, with Legal & General.
At the same time as entering into this agreement, Legal & General has also entered into a longevity reinsurance agreement with Hannover Re.
Tom Ground, head of business development for Legal & General Pension insurance solutions, said: “This arrangement, which follows the recent £1.1bn buyout deal with the T&N Scheme, further demonstrates Legal & General’s ability to provide large-scale insurance solutions in the pension de-risking market.”
Martin Bird, managing principal at Aon Hewitt, the lead adviser on the transaction, commented: “The end of 2011 and now the start of 2012 have seen a flurry of activity on large scale longevity swap transactions, with £6bn of deals announced, including Rolls- Royce/Deutsche Bank and Pilkington/Legal & General. In addition, we have also seen a pick up in activity in the buyin market, including a £1.1bn deal for Turner & Newall/L&G and one of £800m for Uniq/Rothesay Life.”
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