Rolls-Royce Holdings Pension Fund Transfers Liabilities to Legal & General
June 06 2019 - 2:49AM
Dow Jones News
By Adria Calatayud
Rolls-Royce Holdings PLC (RR.LN) said Thursday that its U.K.
pension trustee has transferred pension-risk liabilities and assets
worth 4.6 billion pounds ($5.84 billion) to insurer Legal &
General Group PLC (LGEN.LN).
The British aircraft-engine maker said the deal covers assets
and liabilities relating to approximately 33,000 pensioners members
of its U.K. Pension Fund out of a total of 76,000 members.
Rolls-Royce said the transaction will reduce its post-retirement
obligations by around GBP4.1 billion and its net assets by around
GBP500 million.
Rolls-Royce will make an exceptional cash contribution of around
GBP30 million, but its full-year free cash-flow guidance remains
unchanged, it said.
Legal & General said this is its largest bulk annuity
written in the U.K.
Write to Adria Calatayud at
adria.calatayudvaello@dowjones.com
(END) Dow Jones Newswires
June 06, 2019 02:34 ET (06:34 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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