Pensions World

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 have also entered into a longevity reinsurance agreement with Hannover Re. 

Tom Ground, head of business development for Legal & General Pension insurance solutions, said; "Legal & General is delighted to have been chosen by the Trustee of the Pilkington Scheme for this important deal.

This arrangement, which follows the recent £1.1bn buy-out deal with the T&N Scheme, further demonstrates Legal & General’s ability to provide large-scale insurance solutions in the pension de-risking market. Legal & General continues to offer comprehensive de-risking solutions to pension schemes of all sizes.”        

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 (L&G). In addition, we have also seen a pick-up in activity in the buy-in market, including a £1.1bn deal for Turner & Newall/L&G and one of £800m for Uniq/Rothesay Life.