|
Legal & General Group PLC on Monday said its insurance arm has completed two pension buy-in transactions worth £4.6 billion with schemes sponsored by Ford Motor Co Ltd, the UK arm of the US car maker. It is the largest UK pension risk transfer deal announced in 2025, according to L&G. The buy-ins, completed by Legal & General Assurance Society Ltd, cover the Ford hourly paid contributory pension fund and the Ford salaried contributory pension fund, securing benefits for more than 35,000 retirees across both schemes. Legal & General said the transactions were finalised as part of a single combined deal following close collaboration with the schemes’ trustees and advisers, including Aon PLC as lead transaction adviser and Mayer Brown LLP as legal counsel. The agreement deepens a decade-long partnership between Ford’s pension trustees and Legal & General, whose asset management arm has long provided investment services to the funds. ‘This £4.6 billion transaction puts us firmly on track to achieve our PRT [pension risk transfer] growth targets, said L&G Chief Executive Officer Antonio Simoes. ’Our long-term relationship with Ford is a great example of the competitive edge that comes from the synergies between L&G’s businesses, and the ongoing value this creates for trustees, sponsors and pension scheme members.‘ Legal & General said the deal is its second-largest buy-in by premium size and strengthens its leadership position in the UK pension de-risking market. The company has completed nearly half of the 20 largest UK buy-ins and buyouts since 2007, securing more than £30 billion across these transactions, it said. With this latest deal, Legal & General’s global pension risk transfer volumes for 2025 have reached £11 billion, and the company expects total market activity to approach £50 billion in 2026. Andrew Kail, CEO of L&G Institutional Retirement, said: ’We are delighted to have agreed a buy-in for these funds through a smooth and collaborative process delivered in a remarkably short timeframe.‘ Jonathan Wood, chair of the Ford pension fund trustees, said the agreement marked a ’significant further de-risking milestone‘, adding: ’Having worked towards this for many years, we are delighted to have achieved this milestone, providing even greater security for our members.‘ Legal & General said the trustees paid the premiums through in-specie asset transfers to minimise costs, supported by a price lock mechanism tied to the funds’ assets to provide certainty while final terms were agreed. L&G shares were up 1.6% at 244.45 pence in London on Monday morning. Ford Motor shares were 0.4% lower at $13.79 during pre-market trading in New York. Copyright 2025 Alliance News Ltd. All Rights Reserved.
|
