Legal & General wins £2.5bn bulk annuity contract with TRW pension scheme
Insurance and investment services group Legal & General has won a £2.5bn bulk annuity contract with the UK pension scheme of US car-parts group TRW Automotive.
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The deal, with the TRW Pension Scheme, will see L&G remove £2.5bn of liabilities from TRW Automotive's balance sheet and insure over 22,000 of its pensioners.
The Scheme previously implemented a liability driven investment strategy with L&G Investment Management in 2007.
"We have worked with the TRW Pension Scheme over many years as they moved from index funds to liability driven investment and now to buyout, all with Legal & General," said Kerrigan Procter, the managing director of L&G Retirement.
The £2.5bn TRW deal follows a £3bn bulk annuity contract with the ICI Pension secured earlier in the year.
L&G has now written £8.3bn of total annuity transactions to date in 2014.
"2014 has been a landmark year in the pension de-risking market with the two largest bulk annuity transactions in the UK, both with Legal & General. These demonstrate the strength of Legal & General's tailored pension de-risking solutions," he said.