Legal & General finalizes record £4.8 billion Boots pension deal By Investing.com

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<p>LONDON &#8211; <span itemscope="" itemtype="http://schema.org/Corporation"><span itemprop="name"> Legal &amp; General </span></span> Group (LON:) plc (L&amp;G) has completed a landmark £4.8 billion full buy-in with the Boots Pension Scheme today, marking the largest single UK pension risk transfer by premium size. This transaction ensures the financial security of all 53,000 scheme members and represents a significant milestone in the scheme&#8217;s de-risking journey that began in 2001.</p>
<p>The deal, which has been in the making for over two decades of investment management services provided by L&amp;G to the Scheme, was facilitated by strategic advisors and Aon (NYSE:), with legal counsel from Baker McKenzie, Sackers, Slaughter and May, and Simmons &amp; Simmons. Andrew Kail of L&amp;G Retirement Institutional hailed the transaction as a testament to its scale and impact on the pensions industry.</p>
<p>Alan Baker from Law Debenture praised the enhanced protection this agreement offers to member benefits, mitigating the risk of market volatility. Meanwhile, Sebastian James of Boots acknowledged the deal&#8217;s role in delivering certainty to both scheme members and the company.</p>
<p>With this latest buy-in, L&amp;G&#8217;s year-to-date global Pension Risk Transfer (PRT) business has reached an impressive £13.4 billion. The UK market contributed significantly with £7.2 billion, alongside $1.5 billion from US markets. Since 2018, L&amp;G has written a total PRT volume of £59.6 billion, demonstrating strong market demand driven by increasing pension funding ratios.</p>
<p>The robust solvency ratio maintained by L&amp;G even after this substantial transaction underlines the company&#8217;s strong financial position, potentially paving the way for future investments or enhanced shareholder dividends. This historic agreement stands as a clear indicator of L&amp;G&#8217;s prominent role in the UK&#8217;s pension landscape and its commitment to securing retiree benefits against an ever-changing economic backdrop.</p>
<p><em>This article was generated with the support of AI and reviewed by an editor. For more information see our T&amp;C.</em></p>
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