Acquisition: L&G Takes Over Deep Sea Fisherman's Financial Assets
In a series of pension risk transfer (PRT) transactions, Legal & General Assurance Society Limited has agreed to assume pension obligations for three UK schemes, including the Royal National Mission to Deep Sea Fishermen Retirement Benefit Scheme.
The first transaction, announced in November 2021, saw Legal & General agree a £12 million bulk annuity transaction with the Royal National Mission to Deep Sea Fishermen Retirement Benefit Scheme. This marked the first Pension Risk Transfer for the charity-backed scheme, which provides support to fishermen historically involved in deep-sea fishing.
The Trustees worked with Legal & General on a sole insurer basis, reflecting the growing trend among UK pension schemes to secure defined benefits and improve funding certainty. The transaction secures the benefits for around 30 deferred members and 65 retirees from the scheme.
The relationship between Legal & General and the Royal National Mission to Deep Sea Fishermen Retirement Benefit Scheme dates back to 2017, when Legal & General Investment Management became the investment manager for the scheme. Since then, the scheme has invested in liability driven investment funds and self-sufficiency funds through Legal & General Investment Management.
In March 2022, Legal & General announced a £6.6 million full-scheme buy-in with Gordonstoun School Retirement Benefits Scheme, securing the benefits for over 280 pension scheme members. This was followed by a £30 million full scheme buy-in transaction with the John Townsend Trust Pension and Assurance Scheme, the details of which are not disclosed.
Most recently, Legal & General has agreed a £275 million buy-in transaction with the Trustee of the Hitachi UK Pension Scheme. The company is continuing to work closely with the Trustees towards buyout, a significant step towards securing the benefits for the scheme's members.
Broadstone Consultants & Actuaries Limited advised the Trustees on the transactions, underscoring Legal & General's commitment to working with trusted partners to deliver secure pension outcomes for its clients.
These transactions underscore Legal & General's position as a leading provider in the UK pension risk transfer market, particularly for schemes with mature membership populations. By moving certain pension obligations to an insurer, these schemes can reduce their financial volatility and risk associated with pension obligations, providing more secure funding outcomes for their members.
The Royal National Mission to Deep Sea Fishermen, the charity behind the retirement scheme, continues to support fishermen across the UK, ensuring they receive the care and support they need in their retirement years.
- Legal & General's reinsurance business has secured the financial future of the Royal National Mission to Deep Sea Fishermen Retirement Benefit Scheme, as part of a series of investment strategies in the UK pension schemes market, aimed at reducing financial volatility and risk associated with pension obligations.
- In the finance industry, businesses like the Royal National Mission to Deep Sea Fishermen Retirement Benefit Scheme are turning to reinsurance for investing, as it allows schemes with mature membership populations to move certain pension obligations to an insurer, providing more secure funding outcomes for their members.
