L&G announces ?1billion longevity swap

RNS Number : 2047V

Legal & General Group Plc

09 January 2012

 



Press Release

9 January 2012

LEGAL & GENERAL ANNOUNCES £1BILLION LONGEVITY SWAP.

Legal & General has entered into its first longevity insurance transaction, with the Pilkington Superannuation Scheme. The transaction insures against the risk of 11,500 current pensioners in the Scheme living longer than expected with around £1billion of associated liabilities. At the same time Legal & General has entered into a longevity reinsurance agreement with Hannover Re in respect of this scheme.

This transaction follows the recent £1.1billion buy-out with the Turner & Newall pension scheme in October 2011. These transactions coupled with the growth of Liability Driven Investment transactions demonstrate Legal & General's ability to provide pension de-risking solutions across a wide customer base.

Tim Breedon, Group Chief Executive, said:

"In the UK and globally, the pension fund de-risking market will continue to grow as pension funds look to further de-risk. In 2011 we completed our first £1 billion pension buy-out, and today we have announced our first ever longevity insurance swap. These transactions leverage our expertise in investment management and longevity risk pricing, and I see us remaining at the forefront of this rapidly developing pensions market.

"Legal & General can provide comprehensive de-risking solutions, including buy-out, buy-in, longevity insurance and liability driven solutions to pension schemes of all sizes."

Enquiries:

Investors

Wadham Downing	Group Financial Controller	020 3124 2120
Andrew Jones	Head of Group Financial Reporting	020 3124 2054

Media:

John Godfrey	Group Communications Director	020 3124 2090
Richard King	Head of Media Relations	020 3124 2095

Notes:

Financial calendar 2011/12	Date
2011 Preliminary results and Q4 new business	14 March 2012
Ex-dividend date	18 April 2012
Record date	20 April 2012
Q1 Interim Management Statement	3 May 2012
Annual General Meeting	16 May 2012
Dividend Payment date	23 May 2012

Forward looking statements

This document may contain certain forward-looking statements relating to Legal & General Group, its plans and its current goals and expectations relating to future financial condition, performance and results. By their nature, forward-looking statements involve uncertainty because they relate to future events and circumstances which are beyond Legal & General's control including, among others, UK domestic and global economic and business conditions, market related risks such as fluctuations in interest rates and exchange rates, the policies and actions of regulatory and Governmental authorities, the impact of competition, the timing impact of these events and other uncertainties of future acquisition or combinations within relevant industries. As a result, Legal & General Group's actual future condition, performance and results may differ materially from the plans, goals and expectations set out in these forward-looking statements and persons reading this announcement should not place reliance on forward-looking statements. These forward-looking statements are made only as at the date on which such statements are made and Legal & General Group does not undertake to update forward-looking statements contained in this document or any other forward-looking statement it may make.

 

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