Purchase Announcement: London & Glasgow Acquires Deep Sea Fisherman's Investment Fund
In the bustling world of pension risk transfers, Legal & General (L&G) continues to make significant strides, securing multiple pension schemes in the current market that shows strong demand and competition, particularly for smaller to mid-sized schemes.
Last November, L&G agreed to a £6.6 million full-scheme buy-in with the Gordonstoun School Retirement Benefits Scheme, securing the benefits for around 30 deferred members and 65 retirees. The deal, which represents good value to the Scheme and the employer, according to Sir Jeremy de Halpert, Chair of Trustees, marks a positive start for L&G in 2021.
The Royal National Mission to Deep Sea Fishermen, a charity providing support to fishermen, also entered into a bulk annuity transaction with L&G. The £12 million deal, a first for the Retirement Benefit Scheme, secures the benefits of around 90 pension scheme members. The Trustees worked with L&G on a sole insurer basis to enable the Scheme to take advantage of favourable pricing in the market.
L&G also agreed to a £30 million full scheme buy-in transaction with the John Townsend Trust Pension and Assurance Scheme, covering the benefits of over 280 pension scheme members. Broadstone Consultants & Actuaries Limited advised the Trustees on the transaction.
Meanwhile, the Hitachi UK Pension Scheme, in its first transaction with L&G, agreed to a £275 million buy-in transaction, marking a significant milestone for both parties.
These transactions come in the wake of L&G's £800 million pensions buy-in with the Honda Group’s UK pension scheme, covering about 1,400 pensioners. This deal, one of the largest bulk annuity deals of the year, underscores L&G's strategic focus and operational capability in the sector.
With an asset management AUM exceeding £1.15 trillion in 2023, L&G aims to write between £50bn and £65bn of bulk annuity business in the UK over the next five years. The company remains a major player in the bulk annuity market, demonstrating its commitment to pension risk transfer.
The current market environment presents a favourable landscape for smaller pension schemes, with multiple insurers competing for transactions, resulting in more bidders per transaction across deal sizes. Insurers are increasingly looking to utilize their capacity in smaller deals, offering opportunities for small to mid-sized schemes in 2025. Despite the market seeing over 150 transactions in the first half of 2025, total volumes (£10bn–£15bn) are somewhat lower than expected.
In conclusion, the active bulk annuity market, especially for smaller pension schemes, presents a favourable landscape for schemes seeking to secure their members' benefits. With L&G actively closing significant deals in this segment, smaller pension schemes can find comfort in a market with multiple insurers competing for their business.
- Legal & General (L&G) continues to expand its reinsurance business, as evidenced by their involvement in various finance-related events, including bulk annuity transactions with the Royal National Mission to Deep Sea Fishermen, the John Townsend Trust Pension and Assurance Scheme, and others, indicating their commitment to investing in the business of pension risk transfer.
- In the current market environment, smaller and mid-sized pension schemes may find investing in reinsurance through bulk annuity transactions advantageous, given the increasing competition among insurers seeking to write such business, providing a potential influx of capital and securing the benefits for their members.
