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Legal & General Completes £4.4 Bln Buy-in With British Airways Pension Scheme

Legal & General Group Plc (LGEN.L) said that it has completed a 4.4 billion pounds buy-in for British Airways PLC's pension scheme, Airways Pension Scheme or "APS", covering nearly 22,000 pensioners. It is the largest ever bulk annuity policy arranged with a UK pension scheme and also included the conversion of existing longevity insurance into a bulk annuity.

The UK pension risk transfer or "PRT" market continues to demonstrate a high level of activity with Legal & General actively quoting on more than 20 billion pounds, of which more than 7 billion pounds were in exclusive negotiations at the time. Since then, Legal & General has completed 4.8 billion pounds of UK PRT transactions, including the APS buy-in, and is now actively quoting on 27 billion pounds of UK PRT deals.

Additionally Legal & General has continued to show strong momentum in International PRT, completing 191 million pounds of transactions since the end of June.

In aggregate, Legal & General has completed 6.0 billion pounds of global pension de-risking transactions year to date (UK PRT: 5.3 billion pounds, International PRT: 0.4 billion pounds, Longevity Insurance: 0.3 billion pounds). The financial metrics and Solvency II capital strain of these transactions are in line with previous levels reported by Legal & General.

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