ICI Pension Fund completes £900m buy-in with Legal & General

The ICI Pension Fund has completed a £900m buy-in with Legal & General Assurance Society (L&G), securing the benefits of over 7,000 retirees.

This is the 12th transaction since the ICI Pension Fund entered into an umbrella agreement with L&G in 2014.

To date, L&G has completed transactions totalling £7bn in aggregate with the pension fund and now covers around 70 per cent of the fund’s total liabilities.

LCP and A&O Shearman advised the trustee on all 12 of the buy-ins with L&G, while Macfarlanes provided legal advice to L&G.

Commenting on the deal, Pensions Secretariat Services Limited chief executive, Heath Mottram, said: “The trustee of the ICI Pension Fund is delighted to have completed this further buy-in transaction with L&G.

“The trustee values its ongoing relationship with L&G as it continues its journey to secure the benefits of all of the members of the ICI Pension Fund.”

LCP partner, Clive Wellsteed, also highlighted the pensioner-only transaction as demonstration of how a well-prepared scheme with a de-risked investment strategy can successfully insure benefits over time, even amid a busy market dominated by full buy-ins.

Adding to this, Legal & General Retirement Institutional CEO, Andrew Kail, said L&G were “pleased” to have “deepened” their relationship with ICI Pension Fund in this recent transaction.

“It falls almost 10 years to the day since the fund’s initial ground-breaking transaction with us in 2014,” he continued.

“We look forward to continuing to work closely with the fund to secure its members' pension liabilities.”



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