Legal & General in £570m buy-in deal with Deutsche Bank scheme
Life insurer Legal & General (L&G) has agreed a £570 million pensioner buy-in transaction with the DB (UK) Pension Scheme, which is sponsored by a subsidiary of Deutsche Bank AG.
The buy-in represents the first step on the Scheme’s de-risking strategy of reaching full insurance over the medium term with the objective to increase the security of members’ benefits and reduce risks for the Scheme and the Bank.
The transaction was completed under an “umbrella contract” which allows future transactions with L&G to be completed quickly and easily on pre-agreed terms when favourable pricing opportunities arise.
The Scheme has assets of c. £4.5 billion and a funding surplus.
Aysha Patel, director of Legal & General Retirement Institutional, said: "We’re very pleased to have completed this initial transaction with the Trustee of the DB (UK) Pension Scheme. The appointment of Legal & General Investment Management as the Scheme’s LDI manager and this subsequent buy-in highlights our expertise in assisting schemes at all stages of their de-risking journey. We look forward to continuing our relationship with the Trustee and Bank and providing additional security to their pension scheme members."
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