Skip to content
ADVERTISEMENT
News

L&G completes £1.7bn buy-in for Wood Pension Plan

The deal secures the benefits of all 16,400 members and forms part of the trustee and sponsor’s plans to reduce pension risk.

3 min read
Share
Legal General
ADVERTISEMENT

Legal & General Assurance Society (L&G) has completed a £1.65bn buy-in with the trustee of the Wood Pension Plan.

The deal secures the benefits of all 16,400 members and forms part of the trustee and sponsor’s plans to reduce pension risk.

Member experience was a deciding factor in the insurer selection process, including L&G’s in-house administration, customer service and UK-based support teams.

LCP acted as lead transaction adviser. 

Gowling WLG advised the trustee, Pinsent Masons advised Wood Group and CMS advised L&G.

ADVERTISEMENT

Gareth Mee, chief executive of institutional retirement at L&G, said: “Working closely with the Trustee, sponsor and LCP, we were able to deliver our shared goal of securing members’ benefits and ensuring they are well supported over the long term. 

“The importance placed on member experience and cultural alignment speaks directly to what L&G’s Institutional Retirement business has built over the last four decades: deep PRT expertise, a trusted brand and the experience needed to support customers well beyond the point of transaction. 

“As the market continues to grow, our focus remains on using our scale and capabilities selectively to support high-quality transactions that deliver lasting value for schemes and their members.”

ADVERTISEMENT

Elaine Hanna, head of global retirement at Wood Group, said: “The completion of this buy-in is an important step in securing the long-term future of the Wood Pension Plan. 

“It provides greater certainty for our members while significantly reducing pension risk for Wood. 

ADVERTISEMENT

“Throughout the process, we have worked closely with the Trustee, supported by our advisers and L&G, with a shared focus on achieving a positive long-term outcome for members.” 

ADVERTISEMENT

Hanna added: “We’re grateful for the collaboration and commitment that has helped make this possible.”

Mervyn Walker, chair of Wood Pensions Trustee, said: “We are delighted to have completed a buy-in with L&G after a thorough and competitive process. 

“The buy-in is a significant milestone for the Wood Pension Plan in reducing risk and improving further the security of our members’ benefits. 

“The Trustee’s objectives in approaching the market were to secure excellent value for money and to ensure that the outstanding service we provide to members through the Wood Pensions team would continue into the long-term future.”

ADVERTISEMENT

Walker added: “In L&G, we are confident that we have selected a partner that fully meets our objectives, while also sharing our values and commitment to member service and experience.”

Clive Wellsteed, partner and lead transaction adviser at LCP, said: “This transaction demonstrates the value of a well-prepared and carefully managed process. 

“We worked closely with the Trustee and Wood to present the Plan clearly and compellingly to the market. 

“This drove strong insurer engagement and competition on price, alongside tailored solutions to address the non-price features that mattered most to the Trustee and members.”

Wellsteed added: “From a strong final round, L&G’s proposal stood out for the way it met the Plan’s specific requirements and the wider objectives of the Trustee and sponsor.”

ADVERTISEMENT

Related