Skip to content

A&O advises Lloyds Banking Group Pensions Trustees Limited on GBP5.5bn longevity swap

Related people
Press contacts

For media enquiries relating to this topic, please contact:

Headlines in this article

Related news and insights

Publications: 26 February 2024

Pensions: what's new this week - 26 February 2024

Publications: 23 February 2024

Key Regulatory Topics Weekly Update 16 February to 22 February 2024

Publications: 20 February 2024

Pensions: DC trustee agenda update - March 2024

Publications: 20 February 2024

Pensions: Joint DB & DC trustee agenda update - March 2024

Allen & Overy has advised the Trustee of the Lloyds Bank pension schemes on a second longevity swap transaction.

The transaction is structured as an insurance contract between the Trustee and Scottish Widows, with the longevity risk reinsured to the UK branch of SCOR.

The transaction manages longevity risk in relation to approximately GBP5.5 billion of pensioner liabilities. The arrangement provides long term protection to the Lloyds Bank Pension Scheme No. 1 against costs resulting from pensioners or their dependants living longer than initially expected, enhancing security for the Scheme’s members. It follows the Trustee’s first GBP10bn longevity swap transaction with Scottish Widows and Pacific Life Re in 2020 (on which A&O also advised) and forms part of the Trustee’s wider longevity hedging programme.

Partner and Head of Insurance, Philip Jarvis who led the A&O team advising, said: “We are delighted to have advised the Trustee on this second longevity swap transaction, and to have been able to continue our involvement with this strategically important project for the Trustee. This is another significant transaction in what continues to be an active market for longevity de-risking by pension schemes.”

Partner and Head of Pensions, Neil Bowden added: “Pension de-risking in the UK is expected to hit another all time high this year, with trustees increasingly looking to insurance providers to offer that much needed stability for beneficiaries. As market leaders on derisking, we’re pleased that we were able to support the Trustee on another complex and high value transaction.”

Recommended content