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Rolls-Royce Holdings PLC on Monday said it has agreed a £4.3 billion bulk annuity insurance ’buy-in’ for the 36,000 members of its UK pension fund. The London-based jet engine and power turbine maker said the trustee of the Rolls-Royce UK Pension Fund agreed the buy-in with Pension Insurance Corp. The buy-in involves the transfer of assets in exchange for an insurance arrangement that offsets liabilities, Rolls-Royce explained, and it has been done in anticipation of a full ’buy-out’, or transfer of liabilities, at a later date. This is expected to be within the next 12 months, it said. London-based PIC provides risk transfer for defined benefit pension schemes. Early last month, parent Pension Insurance Corp Group Ltd agreed to a £5.7 billion acquisition by Athora Holdings Ltd, a pan-European provider of savings and retirement services. Rolls-Royce said the deal covers its defined benefit pension scheme in the UK. Its defined contribution scheme is affected. The buy-in will be fully funded from existing pension plan assets and will result in a reduction of Rolls-Royce group assets of about £600 million, it said. Rolls-Royce shares were up marginally at 1,072.00 pence early Monday in London. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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