Legal & General buy closed annuity book

Michael Bow
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LEGAL & GENERAL yesterday paid private equity group Cerberus Capital Management £151m to buy the annuity book of more than 30,000 pensioners.

The acquisition will see the insurer’s subsidiary Legal & General Assurance Society take control of a £1.4bn annuity book of business written by Lucida, one of Cerberus’ portfolio companies.

Lucida was formed in 2006 and bought out the annuities of pensioners in the Merchant Navy Officers Pension Fund, New Ireland Assurance and the UK pension schemes of Morgan Crucible and Newell Rubbermaid.