L&G Hires to Boost De-Risking Division

A banker-turned-investment consultant has joined the UK’s leading de-risker.

Legal & General (L&G) has hired from investment consultant Redington to drive its de-risking business, as the market started the New Year with a bang.

John Towner joined the insurer at the end of December, according to his LinkedIn profile, as head of origination for pension buy-outs, buy-ins, and longevity insurance.

Towner had been with Redington as a director of its investment consulting team since October 2012. He joined the firm after a 16-year career in asset-liability structuring within the banking sector.

He joins L&G as the insurance company has stepped up its attack on the de-risking market. By the end of the third quarter of 2014, it led the pack in the UK with a 40% share of the buy-out and buy-in market, according to data from consultants LCP. This was driven by a £3 billion buy-in with the ICI Pension Fund in the first three months of the year.

Never miss a story — sign up for CIO newsletters to stay up-to-date on the latest institutional investment industry news.

This momentum continued and in November it secured a £2.5 billion partial buy-out of the TRW Pension Scheme as part of a “ground-breaking” risk transfer project. It claimed the deal was one of the largest and most complex completed in the UK to date.

A month earlier, the insurer’s investment management arm announced a “Buyout Aware” service for UK clients, which would lead them from a liability-driven investment product to a full buy-out.

This year, the de-risking sector has already taken off in the UK with the Merchant Navy Officers Pension Fund insuring £1.5 billion of pensioner liabilities against longevity risk.

A spokesperson at Redington confirmed Towner’s departure and wished him luck in the future.

L&G was unable to offer comment by press time.

Related content: The Day After the Buyout… & What to Do When You’re Fully Funded  

«