Legal & General Group PLC (LON:LGEN) has completed a £2.4 billion buyout for the Nortel Networks UK pension plan.
The Nortel pension scheme has around 15,500 pensioner members and about 7,200 deferred members.
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Nortel, the Canadian parent company of Nortel UK, went bust in 2009, leaving pensioners in the lurch. The plan entered a Pension Protection Fund (PPF) assessment period but this has now been resolved and the plan will exit the PPF now it has been acquired by the Legal & General Assurance Society.
“This transaction brings our total volume for global pension de-risking business to more than £8.4 billion for the year to date, a new record for us. Legal & General’s UK pipeline is stronger than we have ever seen, with £25 billion currently in active pricing discussions following the completion of the Nortel buyout. Our international pipeline is also the strongest we have ever experienced,” said Nigel Wilson, the chief executive of L&G.
“The Nortel transaction illustrates the diverse range of situations to which buy-ins and buyouts can provide solutions to enhance outcomes for members, scheme sponsors and in this case, the PPF: as the PRT [pension risk transfer] market grows in volume, we also expect it to grow in diversity,” he added.