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Eversheds helps deliver biggest pension buyout of 2016

  • United Kingdom
  • Global

    14-11-2016

    Eversheds has advised Legal & General Group Plc (Legal & General) on its £1.1 billion pension buyout for the Vickers Group Pension Scheme (the Scheme).

    Part of the Rolls-Royce Group, the Scheme covers over 11,000 members and the transaction is, so far, the largest pension risk transfer transaction of 2016.

    The Eversheds team was led by corporate insurance partner, Hugo Laing and pensions partner Mark Latimour. Hugo Laing was assisted by Henry Dean (associate), while Mark Latimour was assisted by Vanessa Wells (principal associate), Sarah Bowyer (associate), Ally Crowther (associate) and Rosamund Wood (associate).

    The transaction had an innovative price-lock mechanism and the transfer of certain in-specie assets held by the Scheme. It was negotiated over an expedited period and required specific structuring to ensure a smooth transfer of assets from the Scheme to Legal & General, successfully resulting in a full buyout.

    Hugo Laing, corporate insurance partner at Eversheds said:

    “We are delighted to have assisted Legal & General on executing this transaction. It is great that through a collaborative approach between both sides and their respective advisers that this transaction has been delivered and the Scheme has been able to achieve a full buy-out.

    “2016 brought some perceived challenges for the de-risking market in the form of Solvency II. However, the de-risking market is very busy indeed and the size of this transaction demonstrates simply a peak in a large number of transactions we have seen in the past six months.”

    Phill Beach, Head of Core Pension Risk Transfer at Legal & General added:

    “Legal & General are delighted to have worked with Eversheds and my thanks go to Hugo and the team on what proved to be a very smooth and successful implementation for all involved. This is a significant transaction which demonstrates that with early engagement and strong collaboration the objective of buyout is fully achievable.”

    Vickers Group Pension Scheme was advised by Mercer UK and Linklaters LLP.

    Disclaimer

    This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice. Please refer to the full terms and conditions on our website.

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