UK insurer Legal and General Assurance Society Limited (L&G) has completed a £1.6 billion buy-in with the BP Pension Fund, marking the first transaction for the £18 billion Fund.
The two parties collaborated closely on the deal, including agreeing on terms designed to further strengthen the security of members’ benefits.
L&G provided a gilt-based price lock using the Fund’s gilt holdings, ensuring price certainty while the transaction terms were finalised.
The Trustee was advised by Aon as lead transaction adviser, with Linklaters providing legal advice and Cardano offering insurer covenant advice. Mercer acted as Scheme Actuary, while Redington provided strategic investment advice to the Trustee. Macfarlanes and DLA Piper advised L&G on legal matters.
Andrew Kail, CEO, Institutional Retirement at L&G, said, “We are delighted to have completed this buy-in with the Fund, which supports the Fund’s Trustee in its management of risk. A huge thanks to everyone involved for their hard work on the transaction, and to the Trustee for its positive engagement during a thorough selection and implementation process.”
Brendan Nelson, Chair of Trustee, added, “This buy-in follows a detailed review of the options available to support the Fund’s de-risking journey and hence the security of members’ accrued benefits. On behalf of the Board, I’d like to thank L&G for their collaboration throughout our journey from initial exploration to concluding this transaction, and our advisers for their support.”
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