L&G secures over £800m for smaller pension schemes

Written by Callum Conway

10/04/2025

Legal and General Assurance Society Limited (L&G) has insured more than £800m of pension liabilities using L&G Flow, its tailored solution for smaller pension schemes.

L&G Flow offers resources to smaller pension schemes to work with existing administration processes to enable “efficient data cleansing, payroll matching and project management.”

In the past year, it has worked with 15 different consultancies, including buy-ins with the pension schemes of Walkers Shortbread, The Leprosy Mission International, and John Graham Construction and a recently announced £112m full buy-in with the Fullers, Smith, and Turner scheme.

Of the pension schemes that have completed a buy-in under L&G Flow, nearly 20% have completed a full buyout, while other schemes made progress on guaranteed minimum pension (GMP) equalisation, data cleansing and payroll handover to L&G.

Over 80% of L&G’s flow transactions have been with clients of its asset management business, which benefit from the ability to novate their unit funds as premium payments, increasing price certainty and removing asset restructuring costs.

Recent LCP data suggested that smaller scheme transactions below £100m made up almost 80% of all transactions in 2024, with a 60% growth in ‘micro’ scheme transactions under £10m.

Indeed, L&G institutional retirement CEO, Andrew Kail, said activity across the pensions risk transfer (PRT) market remained “exceptionally strong,” particularly for smaller pension schemes.

“In the year to date, L&G has completed or is in exclusive negotiations on £110m of ‘flow’ deals, with many more expected to transact this year,” he added.

L&G institutional retirement head of origination and execution, Dominic Moret, explained that given the varying demands on pension scheme trustees and administrators, it identified a need to deliver a solution for smaller schemes that are not just focused on completing a buy-in transaction but on working collaboratively with trustees and administrators to move the scheme to a buyout.

“Through 'Flow', we can provide a sustainable solution for smaller pension schemes to access transactive pricing, flexible premium payment, and tailored post-transaction support immediately so that we can continue to provide customers and clients with the world-class service they expect from L&G,” he said.

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