DB (U.K.) Pension Scheme, London, has purchased a group annuity contract from insurance company Legal & General Assurance Society to secure a pension buy-in transaction worth £500 million ($619 million).
The contract insures the benefits of about 2,000 retirees and deferred participants, according to a Nov. 13 news release from Legal & General.
It is the Deutsche Bank U.K. pension fund's third buy-in contract in recent years. Earlier this year, the pension fund insured £400 million in liabilities through a buy-in with Aviva, and £570 million in liabilities through a buy-in with Legal & General Assurance Society in 2021.
"We are very pleased to have insured another significant proportion of the Scheme's liabilities with Legal & General, further reducing the risks the Scheme is exposed to," said Michael Wrobel, chair of the pension fund's board of trustees, in the news release.
"The existing relationship with Legal & General, including the umbrella contract in place, resulted in a smooth and efficient process benefiting all parties and ultimately the members of the Scheme. The Trustee and the Bank remain ready to continue to take advantage of future opportunities to further derisk as they arise," said Wrobel.
Lane Clark & Peacock was the lead transaction adviser. DLA Piper UK provided legal advice to Legal & General. Aon is the pension fund's actuary and investment adviser, while Slaughter and May is the ongoing legal adviser.
The pension fund has about £2.5 billion in assets.