AIB Group U.K. Pension Scheme, London, insured £61 million ($86 million) in liabilities through the conversion of an existing policy into a buy-in with Legal and General Group, a spokesman at Mercer, adviser on the deal, confirmed.
The deal converted part of a £250 million assured payment policy, which secured investment-related risks for the finanical services firm's pension fund with L&G in 2019. Under the policy L&G provided protection against changes to asset yields, interest rates and inflation to the plan.
Through the conversion, additional risks such as longevity were also passed to L&G.
The transaction covered both retirees and participants who are yet to retire. The spokesman confirmed that the intention is to convert the remainder of the APP, but did not comment on the timeline.