Legal & General Group plc, a renowned financial services firm, has achieved a significant milestone by finalizing a £4.8 billion full buy-in with the Boots Pension Scheme. This landmark transaction not only makes it the largest single pension risk transfer (PRT) in the UK by premium size but also marks Legal & General’s biggest deal in terms of member coverage, securing the benefits of over 53,000 retirees and deferred members.

Long-Standing Partnership with Boots Leads to Historic Deal

This transaction builds on a two-decade-long relationship between Legal & General and Boots, with Legal & General having provided investment management services to the Scheme for over 20 years. The sponsoring company, Boots, a leading UK health and beauty retailer with a history spanning 174 years, plays a pivotal role in this historic deal.

Innovative Approach to Pension De-Risking

Legal & General’s approach to this transaction highlights an innovative strategy in defined benefit (DB) pension de-risking. By combining investment and insurance solutions, the Scheme can transition its assets effectively, ensuring long-term financial security for its members. This move marks the conclusion of a de-risking process that began in 2001, steering the Scheme towards greater financial stability.

Collaboration and Expertise Key to Successful Transaction

The success of this transaction is attributed to the close collaboration between Legal & General, the Sponsor, and the Trustee. The bulk annuity, Legal & General’s largest single PRT transaction to date, is a testament to their expertise and commitment to providing secure financial solutions.

Industry Expertise and Legal Guidance

The transaction involved significant industry expertise, with Cardano acting as the strategic advisor to Walgreens Boots Alliance and Aon representing the Trustee. Legal advice was provided by renowned firms such as Baker McKenzie, Sackers, Slaughter and May, and Simmons & Simmons, ensuring a robust legal foundation for the deal.

Statements from Key Figures

Andrew Kail, CEO of Legal & General Retirement Institutional, expressed satisfaction with this groundbreaking transaction, noting the acceleration in demand for pension de-risking solutions. Alan Baker, representing Law Debenture and Chair of Trustee for the Boots Pension Scheme, emphasized the added protection and financial security this agreement brings to the Scheme’s members.

This historic agreement between Legal & General and the Boots Pension Scheme not only cements their long-standing relationship but also sets a new standard in the UK’s pension risk transfer market.

  Alan Baker, Andrew Kail, Boots, Boots Pension Scheme, Legal & General Group, United Kingdom