Legal & General (L&G) has insured engineering firm Wood Group’s defined benefit (DB) pension scheme for £1.65bn, the largest bulk annuity transaction of 2026 so far.
The buy-in secures the benefits of 16,400 members, according to a press release from the insurer. The trustee board highlighted the importance of continued strong customer service as a key factor in selecting L&G.
Mervyn Walker, chair of Wood Pensions Trustee, said: “We are delighted to have completed a buy-in with L&G after a thorough and competitive process. The buy-in is a significant milestone for the Wood Pension Plan in reducing risk and further improving the security of our members’ benefits.
“The trustees’ objectives in approaching the market were to secure excellent value for money and to ensure that the outstanding service we provide to members through the Wood Pensions team would continue into the long-term future. In L&G, we are confident that we have selected a partner that fully meets our objectives, while also sharing our values and commitment to member service and experience.”
L&G said the focus on customer service reflected “a wider shift” within the bulk annuity sector, with trustee boards looking at non-financial factors to differentiate between insurers as pricing remains attractive for most schemes.
Clive Wellsteed, partner at LCP and lead transaction adviser on the deal, said the “well-prepared and carefully managed process” meant the trustee board was able to get good engagement from several insurers when seeking a buy-in provider.
He added: “From a strong final round, L&G’s proposal stood out for the way it met the plan’s specific requirements and the wider objectives of the trustees and sponsor.”
Elaine Hanna, head of global retirement at Wood Group, said the buy-in provided “greater certainty for our members while significantly reducing pension risk for Wood”.
“Throughout the process, we have worked closely with the trustee board, supported by our advisers and L&G, with a shared focus on achieving a positive long-term outcome for members,” Hanna added. “We’re grateful for the collaboration and commitment that has helped make this possible.”
The £1.65bn transaction is the biggest buy-in announced so far this year, and the first to be announced valued above £1bn. The past 12 months have been dominated by small scheme buy-ins as insurers and advisers have rolled out streamlined services for sub-£100m schemes, but recent commentary has indicated that larger deals were set to return in the second half of 2026.
Gareth Mee, CEO of L&G’s institutional retirement business, indicated that the insurer planned to take a “selective” approach to future deals to protect its capacity and service provision.
Gowling WLG provided legal advice to the Wood Pension Plan trustees, while Pinsent Masons advised the employer and CMS advised L&G.
