Marvin OnumonuLegal and General (L&G) Assurance Society Limited has completed a buy-in worth around £1.6bn with the BP Pension Fund.
This is the first transaction for the Fund, which is valued at about £18bn.
The deal saw both sides working closely together, including agreeing terms to help support the security of members’ benefits.
L&G gave a gilt-based price lock using the Fund’s own gilt holdings, which meant price certainty while the deal was finalised.
This price lock helped execute the transaction smoothly during a period of high market volatility.
The trustee had Aon as lead transaction adviser, Linklaters for legal advice, and Cardano for insurer covenant advice.
Mercer acted as scheme actuary, and Redington gave strategic investment advice.
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 BP Pension Trustees, said: “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.”
