L&G closes £4bn British Airways pension deal


British insurer Legal and General (L&G) has closed a deal to insure £4.4bn ($5.73bn) of British Airways’ historic pensions liabilities.

The transaction, which L&G said was the largest ever bulk annuity policy arranged with a UK pension scheme, also included the conversion of existing longevity insurance to a bulk annuity.

Nigel Wilson, chief executive of Legal & General, said the company expects to announce further transactions in the next few months: “As we indicated at the half year results, the second half of 2018 is likely to be a record six months for our pension risk transfer business and we expect to announce further transactions in the next few months. We are actively quoting on £27bn of UK PRT deals demonstrating the strong demand for insurance, supported by increasing affordability, as trustees seek to improve security for members and companies look to remove legacy liabilities.”