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Legal & General completes £ 4.4 billion bulk annuity buy-in with British Airways

Legal & General Group Plc ("Legal & General") today announces that it has completed a £ 4.4 billion buy-in for British Airways PLC's pension scheme, Airways Pension Scheme ("APS"), covering nearly 22,000 pensioners. This is the largest ever bulk annuity policy arranged with a UK pension scheme and also included the conversion of existing longevity insurance into a bulk annuity.

As announced at the half year results, the UK pension risk transfer ("PRT") market continues to demonstrate a high level of activity with Legal & General actively quoting on more than £ 20 billion, of which more than £ 7 billion were in exclusive negotiations at the time. Since then, Legal & General has completed £ 4.8 billion of UK PRT transactions, including the APS buy-in, and is now actively quoting on £ 27 billion of UK PRT deals. Additional Legal & General has continued to show strong momentum in International PRT, completing £ 191 million of transactions since the end of June.

In aggregate, Legal & General has completed £ 6.0 billion of global pension de-risking transactions year to date (UK PRT: £ 5.3 billion, International PRT: £ 0.4 billion, Longevity Insurance: £ 0.3 billion). The financial metrics and Solvency II capital strain of these transactions are in line with previous levels reported by Legal & General.

Laura Mason

This transaction also included the conversion of existing longevity insurance to a bulk annuity, demonstrating Legal & General's ability to deal with a complex situation and offer innovative solutions drawing on the broad experience and capabilities of the wider Legal & General Group.

Laura Mason, CEO Legal & General Retirement Institutional

Nigel Wilson

As we indicated at the half year results, the second half of 2018 is likely to be a record six months for our PRT business and we expect to announce further transactions in the next few months.

Nigel Wilson, Chief Executive, Legal & General Group

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