Legal & General complete £21m pension buy-in with Barnett & Hall
Legal & General Assurance Society Limited has completed a full payment of £21 million into the Barnett & Hall Holdings Pension Scheme.
The deal secures benefits for around 110 members of the pension scheme, 105 of whom are non-retirees.
BHH Limited is a subsidiary of W&R Barnett Limited, a fourth generation family company founded in 1896, which is a holding company serving international services including trading, warehousing, agricultural and industrial businesses.
This announcement marks the system’s first pension risk transfer transaction with Legal & General, but the parties involved say they are now interested in working together on another potential future buyout.
“Having built a reputation for transacting a variety of program sizes and membership profiles at effective price levels, we have been able to partner with the Trustees,” said Matthew Dales, Actuarial Manager, Legal & General Retirement Institutional. “We look forward to welcoming our new annuitants to Legal & General as we work with Trustees on the final stage of their risk mitigation journey.”
Declan Billington, Chairman of the Trustees, also commented: “We are delighted to secure this buy-in with Legal & General, which means that all benefits of the program are now covered by insurance policies. The increased security means this is a great outcome for members, whilst the focused approach working with the company and consultants means that in a busy market we have been able to work with L&G to offer us a solution that achieves our goals much earlier met as expected.”
William Barnett, Chief Executive of W&R Barnett Limited continued: “This is a fantastic result for both the Trustee and the Company. Being able to work with the trustee to secure member benefits is a great result. By working with PwC as an independent transaction advisor, we were able to draw on their experience in executing PRT transactions. This coupled with their market relationships and view of live market pricing for similar systems with a significant non-retiree membership meant we were able to secure the transaction with no further required contributions.”
“We are pleased to have assisted the Company and Trustee in completing this bulk insurance transaction,” added Ross Breckon, Pension Risk Transfer Specialist at PwC. “PwC’s role as an independent transaction advisor meant we could engage in the insurance market without any conflicts of interest. This meant we were able to achieve the desired terms and prices based on the transaction goals set by the company and the trustees.”
PwC UK acted as lead transaction advisor on this transaction while Pinsent Masons provided legal advice to the trustee.