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The Misys Retirement Benefits Plan has agreed a £25m further buy-in with Legal & General, covering about 190 deferred and pensioner members. The deal means all members are now insured with L&G.
The buy-in comes as L&G predicts UK pension risk transfers could reach £40bn to £50bn this year and £500bn over the next decade, in its Global PRT Monitor report released today.
The Misys transaction follows a buy-in with L&G in 2012 of roughly £23m of pensioner liabilities and means all members of the plan are now insured with L&G. The scheme is sponsored by London-based fintech Finastra, formed in 2017 by Vista Equity Partners from merging companies it owned, including Misys.
The pension risk transfer was advised by Aon using its ‘Pathway’ approach for transactions under £150m and executed using L&G’s ‘Flow’ process, which is also designed to streamline smaller buy-ins. L&G has written over £800m with Flow since 2022. Across the market, deals with schemes under £100m made up nearly 80% of all transactions last year.
David Brickman, a trustee director at Independent Governance Group, said: “As professional corporate sole trustee to the Misys Retirement Benefits Plan, we are pleased to have completed this second transaction with L&G, building on our member benefit security. We are confident that the transaction represents a fantastic outcome for our members, all of whom will be well supported going forward.”
The buy-in is a good example of how smaller schemes can achieve excellent outcomes in a busy market, argued Joe Hathaway, associate partner on the risk settlement team at Aon.
“We worked closely with L&G to ensure affordability, which was a key objective for both the trustee and the sponsor, including agreeing a premium payment mechanism that provided much needed certainty around the contribution required,” Hathaway explained.
Matthew Dales, director pensions risk transfer, institutional retirement at L&G, said: “Through L&G Flow we can provide a sustainable solution for smaller pension schemes to access immediately transactable pricing, flexible premium payment and tailored post-transaction support.”
So far this year, L&G also revealed an £800m buy-in with Honda, three buy-ins with schemes sponsored by Anglo American totalling £785m, a £505m deal with Inchcape Motors and a £370m buy-in with the scheme of travel operator TUI. How do different streamlined solutions compare?
