L&G has now insured over £800 million of pension liabilities through its Flow service for smaller schemes.
Flow is designed for schemes typically under £100 million and provides a streamlined route to buy-in and buyout. It supports trustees with data, payroll and project management, helping smaller schemes move efficiently through the de-risking process.
Around 1 in 5 schemes using L&G Flow have already moved from buy-in to buyout. Others are working through tasks like GMP equalisation, cleaning up data, and handing payroll over to L&G.
Over 80 per cent of Flow clients also use L&G’s Asset Management business, which lets them use existing funds to pay for transactions, reducing costs and complexity.
In the past year, L&G has completed Flow transactions with 15 different consultancies. These include schemes for Walkers Shortbread, The Leprosy Mission International, John Graham Construction, and a £112 million buy-in for Fullers, Smith & Turner, its largest Flow deal of 2024 so far.
L&G CEO, institutional retirement, Andrew Kail says: “These transactions under L&G Flow demonstrate our commitment to serving the entire market. Activity across the PRT market remains exceptionally strong, and this is particularly true for smaller pension schemes.”
L&G Flow is a flexible solution that has been specifically designed for smaller pension schemes. It typically appeals to pension schemes under £150m and has been used to help schemes as small as £2m. 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.
L&G head of origination and execution, institutional retirement, Dominic Moret says: “Given the varying demands on pension scheme trustees and administrators, we identified a need to deliver a solution for smaller schemes which is not just focused on completing a buy-in transaction, but on working with trustees and administrators collaboratively to move the scheme to buyout. Through 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 that we can continue to provide customers and clients with the world-class service that they expect from L&G.”
