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Lloyds Banking Group pension schemes agree GBP10 billion longevity swap

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Jarvis Philip
Philip Jarvis

Partner

London

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Bowden Neil
Neil Bowden

Partner

London

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Higgins Jane
Jane Higgins

Partner

London

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Randall Elizabeth
Elizabeth Randall

Senior Media Relations Manager

London

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10 February 2020

Allen & Overy has advised Lloyds Banking Group Pensions Trustees Limited (the Trustee) on longevity insurance and reinsurance arrangements to protect certain Lloyds Banking Group pension schemes from the cost of unexpected increases in the life expectancy of its members.

The transactions are structured as an insurance contract between the Trustee and Scottish Widows Limited, with the longevity risk reinsured to Pacific Re Life Limited. The transactions are the second largest UK longevity swap to date, covering longevity risk in relation to GBP10 billion of pensioner liabilities. 

Head of A&O's Insurance group Philip Jarvis, who led the A&O team advising, commented: “These transactions set a new benchmark for pension scheme longevity risk transfer and demonstrates the ability of the market to continue to respond to trustee requirements and deliver very large-scale solutions. We are delighted to have had the opportunity to advise the Trustee on such an innovative and strategically important project.”

The A&O team was led by partner Philip Jarvis and associate Imogen Bishop. Partner Parya Badie and senior associate Kunel Tanna advised on collateral matters. Partners Neil Bowden and Jane Higgins, senior associate Pete Miles and peerpoint consultant Nicola Chatten advised on pensions matters and counsel Tim Harrop advised on tax matters. Senior associate Adam Smith and associate Amy Blackburn advised on data protection matters. Senior associate Po-Siann Goh advised on dispute resolution matters.

For further information, please contact elizabeth.randall@allenovery.com, on 0203 088 2989.

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