Monday 14 November 2016 7:41 am

Legal & General has completed its £1.1bn buyout of Rolls-Royce's pension scheme

Legal & General announced today it has completed a £1.1bn pension buyout for the Vickers Group Pension Scheme, part of the Rolls-Royce Group, covering over 11,000 members.

The company also revealed this morning that retirement sales in the year to date were £6.7bn, made up of £6.3bn in annuities and £400m in lifetime mortgages. L&G recently picked up Aegon's book of annuities, worth £3bn.

Legal & General Retirement boss Kerrigan Procter said: "We look forward to welcoming the 11,000 members of the Vickers Group Pension Scheme to Legal & General. We are pleased to have worked closely with the scheme trustees, their advisers Mercer, and the Rolls-Royce Group to achieve a full buyout. 

"We are grateful for being able to play a part as the trustees, with patient and careful management, steered their way through the financial crisis, recession, the consequences of QE and latterly the outcome of the EU referendum before reaching the point where buyout was appropriate and achievable for all scheme members."

Joel Griffin, head of pensions at Rolls-Royce, said: "This is a great testimony to the work of the trustees and the company working collaboratively over many years to ensure that this scheme is well funded with a prudent investment strategy to enable this excellent outcome for former Vickers employees."

In September, L&G said it was on track to double sales in its retirement business this year.

L&G shares were 2.4 per cent higher, at 235.5p, in late afternoon trading.