This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Find out more here.
X
MM+cover+small+241014
Categories:Pensions

L&G completes £1bn longevity insurance deal

  • Print
  • Comments (1)

BREEDON.jpg

Legal & General has agreed a £1bn longevity insurance deal with the Pilkington Superannuation Scheme.

The transaction insures against the risk of 11,500 current pensioners in the scheme living longer than expected. L&G has also entered into a longevity reinsurance agreement with Hannover Re in respect of the scheme.

This follows a £1.1bn buy-out deal with the Turner & Newall pension scheme in October last year.

L&G chief executive Tim Breedon (pictured) says: “In the UK and globally, the pension fund de-risking market will continue to grow as pension funds look to further de-risk.

“These transactions leverage our expertise in investment management and longevity risk pricing, and I see us remaining at the forefront of this rapidly developing pensions market.”

  • Print
  • Comments (1)

Daily Email Updates
If you enjoyed this article, sign up to receive the latest news and analysis from Money Marketing.

The Money Marketing CPD Centre
Build your annual CPD - you can log and plan your CPD hours for free with The Money Marketing CPD Centre.

Taxbriefs Advantage
Advantage is a digital reference source giving unbiased, independent, answers to your technical queries. Subscribe to Taxbriefs Advantage.

Readers' comments (1)

  • Aha ~ if a deal of this nature can be struck in respect of a large FS scheme such as that of Pilkington, then a similar deal could be struck as part and parcel of the Retirement Income Bond which the government should allow insurers to offer as an alternative to the shackle of annuity rates.

    But, despite Steve Webb's proclamation that he's open to suggestions as to how the pensions landscape could be improved, it seems quite clear to me that this isn't tha case at all. I wrote to him on this very subject and received nothing but a bland, non-committal acknowledgement from one of his minions. Okay, I didn't expect an enthusiastic response along the lines that the Retirement Income Bond is the best proposal they've ever received and they'll definitely incorporate it into the government's programme of positive reform. But the response I have received is so tepid that I very much doubt that any notice at all of my suggestion will be taken.

    So much for the Conservatives' pre-election manifesto pledge to undo as much as possible of the damage done to the pensions framework by successive governments over the past 25 years. All the government appears to be interested in is steamrollering ahead NEST, which is basically forcing millions of people to participate in a manifestly broken pensions framework. Why is that politicians so often say one thing before an election but then, once they've taken office, pursue an entirely different agenda?

    Unsuitable or offensive? Report this comment

Have your sayEdit my profile/screen name

You must sign in to make a comment

Fund Data

Editor's Pick



Poll

Should Sesame unwind the 'pay to play' deals it set up as part of its restricted advice panel?

Job of the week

Latest jobs

View all jobs

Most recent comments

View more comments