Legal & General Assurance Society Limited (L&G), a subsidiary of Legal & General Group plc and a UK financial services provider, has completed a £96 million buy-in with the Cosworth Racing Limited Pension Fund, with the transaction securing the pension benefits of more than 1,000 retired and deferred members.
The Fund is sponsored by Ford Motor Company Limited and is managed by PAN Trustees UK LLP, acting as the Professional Corporate Sole Trustee. This agreement follows a recently completed £4.6 billion buy-in involving two of the Sponsor’s other pension schemes.
The transaction reflects ongoing cooperation between L&G and the Sponsor across the UK and the United States.
L&G’s Asset Management business provides investment services to the Fund, which enabled the Trustee to meet the transaction premium through a direct transfer of existing pooled assets.
This approach allowed the transfer to proceed efficiently and without additional costs. Collaboration among L&G, the Trustee, and their advisers supported the smooth and timely completion of the process.
Aon advised the Trustee as lead transaction adviser, scheme actuary, and investment consultant. Legal advice was provided by Gunnercooke to the Trustee and by Slaughter and May to L&G.
Andrew Kail, CEO, Institutional Retirement, L&G, commented: “We are pleased to have helped Ford and the Trustee secure the retirement benefits of the members in this Fund.
“This transaction illustrates the complementary nature of L&G’s businesses, with our Asset Management division providing investment management services to the Fund over the past decade, and our Institutional Retirement business having now completed three buy-ins with Ford. The close collaboration has enabled a seamless transaction process with positive outcomes for the Fund’s members.”
Andrew Firbank of PAN Trustees, the Trustee of the Fund, said: “We are pleased to have reached this significant milestone for the Fund and to achieve greater security for members through the buy-in. This is the culmination of many years of preparation and intensive data work, building on the strategic merger of different schemes into a single pension fund in 2012.
“The Trustee has greatly appreciated the proactive and highly engaged support from Ford and the commitment and dedication of our advisers to achieve such a great outcome on behalf of our members.”
Hannah Brinton, Partner, Aon, added: “Flexible and nimble governance, as well as focused preparation and an accelerated process, enabled the Fund to move quickly alongside the larger Ford transaction. We worked with the Trustee and Ford to access exceptional pricing and terms that are not generally available on transactions of this size, ultimately delivering a great outcome for the Trustee, Ford and the Fund members.”
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