Legal & General Assurance Society (L&G) has finalised buy-ins with three pension schemes sponsored by Anglo American Services UK, totalling £785m ($1.02bn).
The transaction concerns the Tarmac UK pension scheme, the Tarmac ‘B’ pension scheme and the Anglo UK pension scheme.
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This move secures the retirement benefits of more than 5,100 retirees and 2,500 deferred members.
L&G ensured pricing certainty by offering a price lock based on the schemes’ assets throughout the negotiation process, allowing the terms to be finalised without financial unpredictability.
This marks the company’s first publicly announced deal this year, after a year of “strong global pension risk transfer volumes”, which reached £10.7bn in 2024.
Mercer, serving as the lead transaction adviser, guided the three trustee boards of the schemes, while Gowling WLG and Sackers offered legal counsel.
Clifford Chance advised L&G on legal matters.
L&G institutional retirement CEO Andrew Kail said: “Helping these schemes achieve their endgame objectives marks a strong start to another busy year in the pension risk transfer market. We are committed to providing a secure home for the insured benefits of the schemes’ members and we look forward to supporting them in their retirement. The outlook for this year remains exceptionally positive and with a busy market our pipeline remains as strong as ever across all sizes of transactions.”
The company has concluded £1.2bn in UK pension risk transfer transactions and pricing on £17bn of new deals.
Last month, L&G Group agreed to divest its US insurance operations to Japan’s Meiji Yasuda Life Insurance Company for $2.3bn.
The sale includes L&G’s Legal & General America and its subsidiaries such as Banner Life, and a 20% stake in the US pension risk transfer business.
