L&G strikes pensions and loan deal with Heathrow

Legal & General has signed a novel pensions deal with Heathrow airport, lending money to the company at the same time as taking on some of its pension promises. The insurer says that combining the two has made it cheaper for Heathrow to do the pensions part of the deal. Under the deal with Heathrow, Legal & General will take on £325m of pension promises covering 1,300 retired pension scheme members. Phil Wilbraham, chairman of the scheme's trustees, said that the deal "De-risks the position of our scheme members, enables Heathrow to strengthen their financing position ahead of our airport expansion and provide access to competitive financing". Ms Mason said that the deal did not give Legal & General too high an exposure to Heathrow.

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