Maersk DB pension scheme completes £1.1bn buy-in with L&G

The Maersk Retirement Benefit Scheme has completed a £1.1bn buy-in with Legal & General (L&G) Assurance Society, securing the benefits of around 1,900 members and 3,000 retirees.

The transaction follows a number of de-risking steps taken by the scheme in recent years, including fully hedging its interest rate and inflation exposures.

Maersk Retirement Benefit Scheme chair of trustee, Nigel Pusey, highlighted the deal as "good news" for scheme members, having secured members' benefits following many years of "careful management and de-risking".

He continued: “We were impressed with the flexibility and professionalism shown by L&G, alongside our advisers, to complete the transaction at a challenging time.

“We are very happy to have formed this partnership with L&G, which is an important next step in the scheme’s de-risking journey and improves the security of benefits for all members”

L&G Retirement Institutional CEO, Laura Mason, added: “We are delighted to have been chosen by the trustee as its de-risking partner and to provide long-term security for all of the scheme’s members.

“As one of the larger pension risk transfer transactions of 2020, today’s announcement demonstrates the resilience of the market and the ability of insurers, such as ourselves, to transact amidst a challenging economic environment.

"It also allows us to continue providing wider benefits for the UK economy as we invest responsibly in crucial areas, such as affordable housing, renewable energy and transport - benefitting our cities, future generations and society as a whole.”

Recent research from Barnett Waddingham found that the bulk annuity market is on track to complete between £25bn and £30bn of transactions in 2020, making it the second busiest year on record for the bulk annuity market, despite the pandemic.

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