Lovells aids Pearl Group on £4.5bn Palal revamp

The aim of the restructuring is to increase the potential pension pot of Palal policyholders.

Lovells London-based partner Alex Wood led a team advising the company on a deal that will see the 49,000 Palal policyholders release funds set aside to honour a guaranteed pension rate, with the money being invested according to a new strategy.

“What this restructuring has done is free up funds for investment that were previously unavailable,” he said. “Of course, there’s a risk: annuities could go down even further. But really it’s a win-win situation because even with a low annuity rate the funds are increased ­dramatically.”

To get the go-ahead the planned restructuring had to gain approval from at least 75 per cent of policyholders. At a scheme meeting held in November last year, the plan gained 96.5 per cent support from ­policyholders for the deal.