BP Kicks Off Pension Risk-Transfer in £1.6 Billion Deal With L&G

BP Plc has transferred a portion of its UK pension pot to an insurer, the latest move by a major British company to offload risks related to retirement payments.

Legal & General Group Plc will manage risks for £1.6 billion ($2.2 billion) of BP’s £18 billion fund, according to a statement Thursday. The pension fund is among the UK’s largest and run by BP’s in-house asset manager.

The UK’s pension buyout market, where firms pay insurers to take on their financial obligations to pensioners, has been booming in recent years as higher interest rates reduced the value of plans’ liabilities. ...