Legal & General agrees £4.8bn deal for Boots pension buy-in

Legal & General (LSE: LGEN) has struck the UK’s largest single pension risk transfer, valued at £4.8bn, to take on the Boots Pension Scheme. The deal with Boots, owned by Walgreens Boots Alliance (NASDAQ: WBA), secures benefits for 53,000 members.

The FTSE 100 financial services company said the buy-in completes Boots’ pension de-risking process. For Legal & General, it is the largest deal by membership. Legal & General has now written £13.4bn of global deals this year amid high demand.

The insurer said its “strong” solvency ratio of 224% provides “firepower” for growth. Legal & General worked across insurance, reinsurance and asset management for the “excellent outcome”.

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“We are very pleased to have agreed this buy-in today with the Boots Pension Scheme, representing our largest ever single transaction,” said Legal & General Retirement Institutional CEO Andrew Kail.

Legal & General shares are down 10% year-to-date. The deal comes after a 20-year-plus relationship between L&G and Boots.