Legal & General Assurance Society Limited (“Legal & General”) today announces that it agreed an c.£11 million buyout transaction in November 2021 with the Cornish Mutual Assurance Company Limited Staff Pension Scheme (“the Scheme”), securing the benefits of over 70 pension scheme members.
The sponsoring company, Cornish Mutual, is a team of insurance professionals that aim to protect the rural farming community in the South-West.
The Scheme is an existing client of the Legal & General Group, having appointed Legal & General Investment Management (“LGIM”) as its asset manager in 2015.
Legal & General invests the premiums from the Pension Risk Transfer (“PRT”) transactions it agrees, into economically and socially useful assets such as housing, transport and infrastructure. The funds are pooled together, effectively allowing pension schemes to contribute towards green, sustainable investments to support the UK economy.
Dalriada Trustees developed and implemented an appropriate de-risking strategy, in collaboration with its advisers, to achieve the buyout transaction. Eversheds provided legal advice to the Trustee.
Julian Hobday, Director, Legal & General Retirement Institutional
“We are a whole of market provider, helping pension schemes of all sizes to de-risk and bring further security for their members. As a result of strong and professional collaboration, the buyout was efficiently transacted when favourable pricing arose. We look forward to welcoming our new policyholders to Legal & General after the completion of the buyout.”
Tiziana Perrella, Professional Trustee at Dalriada Trustees
“This deal is a testament to how crucial a solid governance process is for successful transactions. We worked throughout the process in a collaborative way with both our advisers and Legal & General and we’re pleased to have agreed a transaction which results in greater security for the Scheme benefits and much reduced risk for the Scheme and its sponsor. Transactions such as these evidence that great pricing is available within the bulk annuity market for schemes of all sizes, if appropriate preparation has been done in advance.”