Three defined benefit (DB) pension schemes sponsored by companies owned by the same group have completed an £86m bulk purchase annuity (BPA) deal with Legal & General (L&G).

The transaction secured the benefits of all 896 members across the three schemes, comprising 176 deferred and 720 pensioner members.

A total of £86m of premiums were insured, with deal sizes of £77m, £5m, and £4m.

The three schemes are sponsored by companies owned by an unnamed family group, which has business interests in manufacturing and construction across the UK and Europe.

L&G was selected by the trustees following a competitive quotation process and the transaction was completed without the need for additional contributions.

The BPA process was completed using Broadstone’s SM&RT Insure to project manage the deal, allowing the three schemes to approach the market together.

Broadstone providing annuity broking advice alongside its existing appointment for scheme actuary and investment services.

Administration services were provided by MUFG, while DLA Piper acted as legal adviser to the trustees and L&G received legal advice from its in-house team.

Trustee chair for the schemes, Nigel Brice, commented: “This is a fantastic outcome for all three schemes. We’re especially grateful to Broadstone and DLA for their expert guidance throughout the process.

“With the legacy DB schemes now insured, the sponsoring employers can move forward with their plans for investment and growth, while the trustees and members can rest assured that full benefits have been secured with one of the insurance market leaders.”

L&G director, pension risk transfer, Rosie Twist, said the insurer was pleased to have completed the transaction that enhanced its existing relationship with the client and provided greater security for its members.

Broadstone deal lead, George Whitaker, added: “With all three schemes considering their endgame options at broadly the same time, we advised the trustees to consider bringing them to market together, with the aim of securing an improved deal for the smaller schemes by virtue of the larger scheme transacting alongside.

“The resulting competitive quotation process ensured that we delivered the best possible outcome for all three schemes, their members, and the sponsoring employers.”

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