Legal & General completes £2.4 billion buyout with Nortel Networks UK Pension Plan
Legal & General Assurance Society Limited ("Legal & General") today announces that it has completed a £2.4 billion buyout for the Nortel Networks UK Pension Plan, ("The Plan"), covering around 15,500 pensioner members and around 7,200 deferred members.
The Plan's sponsor went into administration in 2009 and the Plan entered a Pension Protection Fund ("PPF") assessment period, where it has remained whilst insolvency proceedings were on-going. With these proceedings now resolved, the Plan has been able to secure benefits in excess of PPF levels and will exit the PPF having secured the buyout with Legal & General.
The financial metrics and Solvency II capital strain of this transaction are in line with previous levels reported by Legal & General.
Nigel Wilson, Chief Executive, Legal & General Group, said:
“This transaction brings our total volume for global pension de-risking business to more than £8.4 billion for the year to date, a new record for us. Legal & General’s UK pipeline is stronger than we have ever seen, with £25 billion currently in active pricing discussions following the completion of the Nortel buyout. Our international pipeline is also the strongest we have ever experienced.
The Nortel transaction illustrates the diverse range of situations to which buy-ins and buyouts can provide solutions to enhance outcomes for members, scheme sponsors and in this case the PPF: as the PRT market grows in volume, we also expect it to grow in diversity."
Laura Mason, CEO Legal & General Retirement Institutional, said:
"We are pleased to have been able to deliver this significant transaction which provides flexibility and greater financial security to the members of the Nortel Networks UK Pension Plan.
The collaborative relationship built up with KPMG and the Trustee, working closely together, enabled us to deliver a complex solution to meet the needs of the Trustee and Plan members, whilst delivering to tight timescales.
This transaction continues to demonstrate our solutions driven proposition, while providing wider benefits for the pension environment and the UK economy as we deliver further direct investments."
ENDS
Notes to Editors
Legal & General Group Plc
The Legal & General Group, established in 1836, is one of the UK's leading financial services companies. As at 31 December 2017, we had over 9.5 million customers in the UK for our life assurance, pensions, investments and general insurance plans and over 1 million life insurance customers in the US.
Over fifteen million people worldwide rely on us to help them save for the future and to protect their families and their homes.
Financial details
Legal & General has a market capitalisation of £15.4 billion (as at 5th October 2018) and is responsible for investing £985 billion worldwide (as at 30 June 2018) on behalf of investors, policyholders and shareholders.
Forward-looking statements
This announcement may contain certain forward-looking statements relating to Legal & General, its plans and its current goals and expectations relating to future financial condition, performance and results. By their nature, forward-looking statements involve uncertainty because they relate to future events and circumstances which are beyond Legal & General's control, including, among others, UK domestic and global economic and business conditions, market-related risks such as fluctuations in interest rates and exchange rates, the policies and actions of regulatory and Governmental authorities, the impact of competition, the timing impact of these events and other uncertainties of future acquisitions or combinations within relevant industries. As a result, Legal & General's actual future condition, performance and results may differ materially from the plans, goals and expectations set out in these forward-looking statements and persons reading this announcement should not place reliance on forward-looking statements. These forward-looking statements are made only as at the date on which such statements are made and Legal & General Group Plc does not undertake to update forward-looking statements contained in this announcement or any other forward-looking statement it may make.
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