L&G Buy-In Deal With Mitchell & Butlers

Legal & General Assurance Society Limited (“Legal & General”) today announces that it has agreed a c£650 million full scheme buy-in with the Mitchells & Butlers Executive Pension Plan (“the Plan”), securing the benefits for all Plan members. The sponsor, Mitchells & Butlers Plc, has a history dating back to 1898 and operates a number of the UK’s restaurants, pubs and bars, including Harvester and All Bar One.

Today’s announcement marks the Plan’s first pension risk transfer transaction after two years of preparation and price monitoring.

The Plan is an existing client of the Legal & General Group, with its investment management business (“LGIM”) providing management of the Plan’s Defined Contribution (DC) pension scheme assets.

The Trustees were advised on the transaction by XPS and legal advice to the Trustees was provided by Gowling WLG. Macfarlanes provided legal advice to Legal & General.

Jonathan Duck, Chairman of Trustees, Mitchells & Butlers Executive Pension Plan

“The Trustees are delighted to have concluded this bulk annuity buy-in with Legal & General.  The transaction further secures all members’ benefits as well as giving M&B plc, the Plan sponsor, certainty on its future financial commitments.  It is a great deal for all parties.  I would like to thank the Trustees’ advisors and M&B plc for their steadfast support over the years, which has ultimately made this buy-in possible.”

Celia Monteiro, Director, Legal & General Retirement Institutional

“ We are delighted to have been able to help the Mitchells & Butlers Executive Pension Plan secure their members’ benefits with us. We worked flexibly with the Trustees over a period of two years to monitor pricing and then helped them to move quickly once a transaction became affordable. This approach demonstrates the value that can be realised by engaging with insurers at an early stage and working with them to achieve a clearly defined pricing target.”

Harry Harper, Head of Risk Transfer, XPS

“It has been a pleasure to work with the Trustees to make this transaction a success.  Throughout the process, regular pricing received from insurers has been fed into the Plan’s existing daily funding updates, to give clarity of affordability.  At the same time, data verification work and investment restructuring have provided all parties with the confidence they needed to commit to a transaction.  It is a fantastic result for all stakeholders, securing members’ benefits and avoiding cost on the sponsor.”

About alastair walker 10177 Articles
20 years experience as a journalist and magazine editor. I'm your contact for press releases, events, news and commercial opportunities at Insurance-Edge.Net

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