Aquisition: Land and General (L&G) Acquires Deep Sea Fisherman's Investment Fund

Aquisition: Land and General (L&G) Acquires Deep Sea Fisherman's Investment Fund

In recent months, Legal & General (L&G) has solidified its position as a leading player in the Pension Risk Transfer (PRT) market, both in the UK and the US.

The Royal National Mission to Deep Sea Fishermen Retirement Benefit Scheme has entered into its first PRT transaction, a £12 million bulk annuity deal with L&G. This agreement, reached in November 2021, secures the benefits for around 90 pension scheme members. The Mission, a charity providing support to fishermen, is pleased with the transaction, which represents good value to the Scheme and the employer, according to Sir Jeremy de Halpert, Chair of Trustees.

In a separate transaction, L&G has agreed a £6.6 million full-scheme buy-in with the Gordonstoun School Retirement Benefits Scheme, securing the benefits for around 30 deferred members and 65 retirees. This deal, finalised in March 2022, is the first PRT transaction for the Gordonstoun School Retirement Benefits Scheme.

L&G has also agreed a £30 million full scheme buy-in transaction with the John Townsend Trust Pension and Assurance Scheme. This deal covers the benefits of over 280 pension scheme members, marking a significant step towards securing the Scheme's future. Notably, the John Townsend Trust Pension and Assurance Scheme entered Pension Protection Fund (PPF) assessment, underscoring the need for a robust PRT solution.

In the UK, L&G continues to be an active player in securing buy-ins. For instance, it completed a £34 million buy-in with the Walkers Shortbread Limited Retirement Benefits Scheme in 2024.

In the US, L&G entered the PRT market in 2015 and has steadily grown its business. By 2024, it had completed a record $2.2 billion in PRT business, marking its largest year there to date.

To secure favorable pricing in the PRT market, L&G leverages strategic partnerships and diversified investment strategies. A recent example is its strategic partnership with Blackstone Inc., granting L&G access to Blackstone’s private credit funds and origination platform. This partnership allows L&G to diversify its asset base for its annuity business, enabling better risk management and competitive pricing for PRT transactions.

In summary, L&G's focus on sustainable growth and leadership in the global pension risk transfer market is evident in its strategic approaches to pricing and partnerships. The company continues to make significant strides in securing the futures of numerous pension schemes, both in the UK and the US.

In the reinsurance sector, Blackstone Inc.'s strategic partnership with Legal & General (L&G) has enabled the access to private credit funds and origination platform, thereby diversifying L&G's asset base for its annuity business and facilitating better risk management and competitive pricing for investing in Pension Risk Transfer (PRT) events.

Furthermore, L&G's finance strategies have proven fruitful, as demonstrated by the raft of PRT transactions it has executed, such as the John Townsend Trust Pension and Assurance Scheme's £30 million deal, securing the benefits for over 280 pension scheme members and marking a significant step towards securing the Scheme's business future.

Read also: