UK. Pearson agrees deal to insure third of pension scheme risk
Publisher Pearson said on Tuesday it had agreed a deal to insure a third of its pension scheme liabilities totalling 1.2 billion pounds ($1.6 billion) with Legal & General and Aviva.
The deal “substantially reduces” the risk that Pearson would be unable to fund future retiree benefits and was agreed at no further cost to the company, it said in a nine-month trading update.
Under the so-called ‘buy-in bulk annuity’, the insurers take on some of the risk of the pension scheme, which remains with the company. Aviva, which is focused on growing out its corporate pensions business, said in a separate statement the deal was the largest deal it had struck to-date.
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