View more on these topics

L&G buys closed book annuity provider for £151m


Legal & General has agreed a £151m deal to acquire closed UK annuity buyout company Lucida.

The acquisition, by L&G’s subsidiary Legal & General Assurance Society, is expected to complete in the third quarter subject to regulatory approval.

Lucida, which closed to new business in November, has £1.4bn of annuity assets and over 31,000 pensions in payment.

L&G says operational and capital synergies will allow it to release £66m of capital and reserves following completion, giving a net acquisition price of around £85m.

It adds further significant capital synergies will follow a corporate restructuring in 2014.

Lucida was founded in 2006 to focus on the bulk purchase annuity market. It implemented bulk annuity arrangements with the Merchant Navy Officers Pension Fund, New Ireland Assurance and the UK pension schemes of Morgan Crucible and Newell Rubbermaid.

L&G managing director of annuities Kerrigan Procter says: “We identified retirement solutions as one of our five themes for growth and I am delighted to be able to announce our first acquisition in this arena.

“This acquisition will benefit Lucida’s customers by providing them with the comfort of knowing their pensions will be paid by a longstanding, trusted and well capitalised business.”

Evolve Financial Planning director James Norton says: “Lucida’s clients will probably take comfort from the fact the firm is being bought by a FTSE 100 company.”


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm