Macfarlanes advises Legal & General on £650m bulk annuity transaction with 3i Group Pension Plan

27 May 2020

Macfarlanes has advised long-standing client Legal & General on a £650m defined benefit pension risk transfer transaction with the Trustees of the 3i Group Pension Plan (the 3i Plan).

The transaction involved the issuance of a buy-in policy by Legal & General that will cover the 3i Plan’s liabilities in respect of approximately 280 pensioners and 570 deferred members. It follows two previous pensioner buy-ins undertaken by the Trustees, including a c.£95m transaction on which Macfarlanes advised Legal & General in 2019, and results in the 3i Plan being fully insured through buy-in policies held as assets of the Plan.

The Macfarlanes team was led by insurance partner Andrew Barton with assistance from senior insurance solicitor Madison Kaur and insurance solicitor James Penfold.

Andrew Barton comments: “We are delighted to have advised Legal & General once again with this significant transaction. It showcases the growth of the bulk annuity market, which continues despite the current economic conditions, as well as our expertise on high-value pension risk transfer transactions.”