On the go: Industrial manufacturer Siemens has completed a £530m buy-in for Siemens Benefits Scheme with Legal & General, covering more than 2,000 pensioners.
The deal follows a previous bulk annuity transaction made in 2018, with the company opting for an umbrella contract with L&G, which will allow potential future transactions to be completed when the time and market conditions are right, the insurer stated.
Joanna Matthews, chair of the scheme’s trustee board, noted that through careful planning, the trustees “were able to overcome the logistical and investment challenges posed by Covid-19 and complete this transaction at this time on very favourable terms”.
The trustees were advised on the transaction by Aon and Sackers. Legal advice was provided to L&G by Eversheds.
Karen Gainsford, principal consultant at Aon, explained that the transaction followed a period of meticulous preparation, and that the scheme’s nimble governance was key to “being able to secure attractive terms so efficiently”.
“It’s a great example of what will be needed throughout the remainder of 2020, as schemes seek to secure benefits in what is set to become a busy market once again,” Ms Gainsford said.
*the article has been corrected as the value of the deal is £530m and not £350m as previously stated.
