Deutsche Bank inks buy-in deal for U.K. pension fund with L&G
DB (U.K.) Pension Scheme, England, insured £570 million ($783 million) in liabilities through a buy-in with Legal & General Assurance Society, a spokesman confirmed.
The transaction, the first for the £4.5 billion plan, was structured to allow for further risk transfer deals with Legal & General to be completed on pre-agreed terms when favorable pricing arises. The spokesman said the plan will look to complete further transactions.
Lane Clark & Peacock advised the trustees and Deutsche Bank, the plan sponsor, on the derisking options. Law firms CMS Cameron McKenna Nabarro Olswan and Slaughter and May provided transaction legal advice and legal advice, respectively. Aon provided actuarial and investment advice.
Law firm Eversheds Sutherland provided legal advice to Legal & General.
“It is a significant step on our derisking journey and the excellent outcome with Legal & General reflects the expertise and collaborative approach of our advisers and our close working relationship with the bank. It establishes a strong platform for future derisking of the scheme,” Michael Wrobel, chairman of the trustee board of the DB (U.K.) Pension Scheme, said in a news release.
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