Legal & General is engaged in offering life insurance, pensions and investment management services. Credit: Ceri Breeze via Shutterstock.

Legal & General Assurance Society has completed a £1.1bn ($1.4bn) full buy-in with the DB (UK) Pension Scheme, securing the benefits of approximately 4,000 members.

The scheme is sponsored by a subsidiary of Deutsche Bank and is a longstanding client of Legal & General’s asset management arm.

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Furthermore, this is the Scheme’s third buy-in with Legal & General following a £570m buy-in announced in 2021 and a £500m buy-in in 2023, and brings the total of insured liabilities with Legal & General to £2.1bn.

In addition, it also benefitted from a previous umbrella agreement with Legal & General, which ensured a smooth agreement of commercial terms. It has successfully implemented a phased buy-in strategy over the last four years to fully insure all accrued benefits, with the facility to accommodate new benefits for the 250 active employee members as they accrue additional service. 

Andrew Kail, CEO, institutional retirement, Legal & General, said: “As a long-standing client of both our Institutional Retirement and Asset Management division, we are pleased to mark the completion of the DB (UK) Pension Scheme’s de-risking journey, securing its remaining members’ benefits.

“Our robust capabilities in Pension Risk Transfer and Asset Management are central to the Group’s new growth strategy, and this latest transaction is a further demonstration of how our synergistic business model can benefit clients, customers, and shareholders.”

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Michael Wrobel, Chair of the Trustee Board, DB (UK) Pension Scheme, continued: “We are delighted to have completed this full buy-in of the Scheme’s liabilities with Legal & General to further improve the security of members’ benefits. The Scheme has reached its long-term target significantly ahead of the plan we set in 2018. The existing relationship with Legal & General has been fundamental in helping us achieve this and allowed us to move quickly to lock in attractive pricing for this and previous transactions.”

Jeremy Sowden, head of global pension and benefits, Deutsche Bank, added: “This latest transaction means that all accrued benefits across our two UK Schemes have now been insured removing over £3bn of pension risk. This is an excellent result for the members, the Trustee and the Bank. Our collaborative working relationship with the Trustee and its advisers has been key to the successful and efficient implementation of the plan. The Bank and Trustee took the opportunity presented by market conditions to fully insure accrued liabilities much earlier than previously planned and the resulting successful transaction represents an important milestone in our global strategy to manage defined benefit scheme risk.”