Legal & General completes £570 million buy-in with Deutsche Bank pension scheme

17 February 2021

Legal & General Assurance Society Limited (“Legal & General”) today announces that it has agreed a £570 million pensioner buy-in transaction with the DB (UK) Pension Scheme (“the Scheme”).

The Scheme is sponsored by a subsidiary of Deutsche Bank AG (“the Bank”), has assets of c. £4.5bn and has a funding surplus. The buy-in represents the first step on the Scheme’s de-risking strategy of reaching full insurance over the medium term with the objective to increase the security of members’ benefits and reduce risks for the Scheme and the Bank. This transaction was completed under an “umbrella contract” which allows future transactions with Legal & General to be completed quickly and easily on pre-agreed terms when favourable pricing opportunities arise.

LCP provided strategic longevity de-risking advice to the Trustee. LCP also worked with the Trustee and Bank when considering the de-risking options, including the agreed phased buy-in approach. CMS provided transaction legal advice to the Trustee and worked alongside LCP on the execution of the initial transaction. Aon acted as scheme actuary and investment adviser, and Slaughter and May as ongoing legal adviser. Eversheds Sutherland provided legal advice to Legal & General.

Aysha Patel, Director, Legal & General Retirement Institutional

“We’re very pleased to have completed this initial transaction with the Trustee of the DB (UK) Pension Scheme. The appointment of Legal & General Investment Management as the Scheme’s LDI manager and this subsequent buy-in highlights our expertise in assisting schemes at all stages of their de-risking journey. We look forward to continuing our relationship with the Trustee and Bank and providing additional security to their pension scheme members.”

Source: Legal & General