The UK’s closed ICI Pension Fund has completed a fifth buy-in, insuring £750m (€1.03bn) of liabilities with Legal & General shortly after the EU referendum.
The pension risk transfer takes to £7.05bn the reported liability insurance deals by ICI Pension Fund; it has £10.3bn of liabilities in total as at 31 March 2015.
Legal & General has executed £5bn in pension risk transfers with ICI Pension Fund since 2014, according to a statement.
The recent deal with the pension fund was executed shortly after the UK vote on its membership of the European Union on 23 June.
Cheryl Agius, head of strategic pension risk transfer at Legal & General Retirement said: “The strength and depth of our relationship with ICI Pension Fund enabled us to move fast when the market opportunity presented itself.”
Legal & General has executed £4.5bn of bulk and individual annuity business this year so far, compared with sales of £2.7bn for all of 2015.
It carried out £250m of pension risk transfer business in June during the referendum period, it said.
ICI Pension Fund announced its fourth buy-in in the lead-up to the referendum, a £630m deal with Scottish Widows.
The UK’s ICI pension fund is closed, and sponsored by AkzoNobel.
JLT Employee Benefits expects new pension fund risk transfer business in 2016 to match or exceed that of 2015, when more than £12bn in liabilities were insured either through buy-ins or buyouts.
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