Legal & General (LON:LGEN) has completed a £4.4 billion buy-in for British Airways’ pension scheme, the blue-chip insurer has said. The deal, which covers nearly 22,000 pensioners, is the largest ever bulk annuity policy arranged with a UK pension scheme, according to the company.
Legal & General’s share price has responded positively to the news, having added 0.92 percent to 253.22p as of 14:29 BST. The stock is outperforming the broader UK market, with the benchmark standing 0.1 percent in the red at 7,306.09 points. The group’s shares have lost a little over one percent of their value over the past year, largely in line with the Footsie.
L&G closes £4.4bn pension deal
Legal & General said in a statement today that it had completed a £4.4 billion buy-in for British Airways’ Airways Pension Scheme, covering nearly 22,000 pensioners. Reuters noted in its coverage of the news that the airline-sponsored pensions scheme had said that the deal would cover about 60 percent of all pensioner liabilities.
“I’m delighted that Legal & General has transacted the largest bulk annuity to date in the UK for British Airways’ pension scheme,” the insurer’s chief executive Nigel Wilson commented in the statement, adding that the second half of the year was ‘likely to be a record six months’ for the group’s pension risk transfer business. L&G further noted that it had completed £6 billion of global pension de-risking transactions in the year-to-date.
Analysts on blue-chip insurer
Barclays, which is ‘overweight’ on Legal & General, boosted its price target on the company from 311p to 317p last week. According to MarketBeat, the FTSE 100 insurer currently has a consensus ‘hold’ rating and an average price target of 286p.