Legal & General completes £370 million buy-in with the TUI Group UK Pension Trust
We have completed a £370 million buy-in with the BAL section of the TUI Group UK Pension Trust.
This buy-in, which was completed in late 2024, follows an initial £610m transaction in 2021 and now means all section benefits are fully secured.
The sponsoring employer, TUI UK (“the Sponsor”), is a leisure, travel, and tourism company.
Following the initial transaction, the Trustee worked collaboratively with Legal & General to monitor pricing for a period of 18 months and ensured they were in a position to react to favourable market conditions and transact at an opportune time. This ensured an efficient transaction while affordability remained attractive.
c£30m of the premium has also been deferred to allow the Scheme to run-off some illiquid assets and is payable over the next two years.
Overall, the Scheme has now completed three transactions with Legal & General, having also completed a £184 million full buy-in for the TAPS section of the Scheme.
LCP was the lead transaction adviser to the Trustee and also provided actuarial and investment advice. Linklaters provided legal advice to the Trustee. Isio and Herbert Smith Freehills provided advice to the Sponsor, and Macfarlanes provided legal advice to Legal & General.