Legal & General wraps up £530m buy-in deal with Siemens

Legal & General has completed a £530 million buy-in for the Siemens Benefits Scheme, securing the benefits of more than 2,000 UK retirees.

The deal is the Scheme’s first Pension Risk Transfer (PRT) transaction with Legal & General and builds on a previous transaction it completed in 2018.

L&G said that the Scheme has chosen an umbrella contract to allow for potential future transactions to be completed quickly and easily, when the time and market conditions are right.

The Trustees ran an agile and flexible process, which allowed them to take advantage of favourable pricing opportunities in the market, and to move quickly to meet their objectives.

Gavin Smith, pricing & execution director of Legal & General Retirement Institutional, said: "This transaction represents another key de-risking step for the Siemens Benefits Scheme and we are delighted to provide further security to the Trustees and their members. Legal & General have been working with the Scheme for many years and Legal & General Investment Management Limited helped to set up the liability-driven investment portfolio in 2008. We look forward to continuing our relationship over the coming years."

Joanna Matthews, chair of the Trustee, added: "I am delighted that we have been able to complete another key step in the Trustee’s de-risking journey. Through careful planning, we were able to overcome the logistical and investment challenges posed by Covid-19 and complete this transaction at this time on very favourable terms. This is a fantastic outcome and I would like to thank all involved in the process."

John Smith, head of pensions, Siemens, said: "This is another major milestone for the Siemens Benefits Scheme. I am pleased L&G were able to offer us competitive terms for this transaction, allowing us to continue to build on the long-standing relationship we have with them here in the UK."