Plus   Neg

Legal & General Closes GBP 2.4 Bln Buyout With Nortel Networks UK Pension Plan

Legal & General Group Plc (LGEN.L) announced Monday that Legal & General Assurance Society Limited has completed a 2.4 billion pounds buyout for the Nortel Networks UK Pension Plan, covering around 15,500 pensioner members and around 7,200 deferred members.

The Plan's sponsor went into administration in 2009 and the Plan entered a Pension Protection Fund or PPF assessment period, where it has remained whilst insolvency proceedings were on-going. With these proceedings now resolved, the Plan has been able to secure benefits in excess of PPF levels and will exit the PPF having secured the buyout with Legal & General.

The financial metrics and Solvency II capital strain of this transaction are in line with previous levels reported by Legal & General.

Nigel Wilson, Chief Executive, Legal & General Group, said, "This transaction brings our total volume for global pension de-risking business to more than £8.4 billion for the year to date, a new record for us. Legal & General's UK pipeline is stronger than we have ever seen, with £25 billion currently in active pricing discussions following the completion of the Nortel buyout."

For comments and feedback contact: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
Amazon.com Inc. said it plans to open a new corporate office in Manchester in 2019 and create more than 1,000 highly-skilled jobs in the UK. As part of the ramp up of its UK investment, Amazon will increase the capacity of its Scotland Development Centre and Cambridge Development Centre. The company's 1,000 new staffers will work on research and development in the UK. Ford will launch its new "Built Ford Proud" U.S. advertising campaign this weekend as the automaker grapples with slowing sales and plans to restructure its operations in order to cut costs. The ad campaign will highlight Ford's 115-year history of manufacturing cars and comes as the automaker intends to replace 75 percent of its U.S. lineup by 2020. The Procter & Gamble Company (PG) reported first-quarter core earnings per share of $1.12, an increase of three percent versus the prior year, as benefits from a lower tax rate due to implementation of the U.S. Tax Act was partially offset by a reduction in operating margin, driven largely by negative...
Follow RTT