The new longevity insurance and reinsurance arrangements cover pensioner liabilities in the following Schemes (“the Schemes”) £3.1 billion in the Lloyds Bank Pension Scheme No.1. £0.7 billion in the Lloyds Bank Pension Scheme No.2. £1.0 billion the HBOS Final Salary Pension Scheme.
The first two of these transactions closed in December 2025 and the final one in September 2025. This follows the Trustee announcing two longevity insurance and reinsurance arrangements in March 2025, which covered a further £5.1 billion of pensioner liabilities.
The decision to enter these transactions will not change the pension benefits that will be paid to members of the Schemes. All pensioners will continue to receive their pensions each month as normal, and these will continue to be paid by the Schemes.
All three of the transactions are structured as insurance policies with Rothesay Life Plc. (“Rothesay”) as the insurer, with reinsurance provided by a major global reinsurer for the Lloyds No.1 and Lloyds No.2 schemes and an insurance subsidiary of U.S. based Prudential Financial, Inc. (“PFI”), a large, multi-national financial services company for the HBOS scheme.
These latest transactions follow previous insurance and reinsurance arrangements that the Trustee has entered between 2020 and 2025, in total covering over £25 billion of liabilities across the Lloyds Banking Group pension schemes.
Vicky Paramour, Trustee Director and Chair of the Investment & Funding Committee, stated: “We are pleased to have successfully completed these transactions, which further reduce the Schemes’ exposure to longevity risk and make the Schemes more secure to the benefit of all members. The selection of Rothesay and the reinsurers followed a fair, robust and transparent review of the longevity insurance and reinsurance options available across the market.”
Matt Wiberg, WTW, lead adviser to the Trustee, said: “WTW is proud to have advised the Trustee on their latest three longevity insurance and reinsurance arrangements, bringing the total to five in the last 12 months with three different reinsurers. I appreciate the collaborative efforts of all involved in achieving the successful completion of these transactions, enabling the Trustee to capitalise on currently attractive market pricing and providing further security for members benefits.”
Kate McInerney, A&O Shearman, legal adviser to the Trustee, remarked: “We are delighted to have advised the Trustee on these transactions, and to have been able to continue helping the Trustee reduce longevity risk across the Lloyds’ schemes. These are significant transactions in what continues to be an active market for longevity de-risking by pension schemes.”
Ben Howe, Head of Reinsurance at Rothesay, commented: “We are delighted to continue to partner with the Trustee and reinsurers to provide these de-risking solutions. Within a busy pension risk transfer market, the transactions demonstrate the continued high demand for longevity protection for UK pension schemes as part of their wider strategy to mitigate potential funding volatility. A collaborative and solutions-led approach across all parties, facilitated a timely and efficient process in the completion of both insurance and reinsurance arrangements.”
Rohit Mathur, Head of International Reinsurance at PFI, said: “We are pleased to once again partner with the Lloyds Banking Group Pensions Trustees on a tailored longevity solution that supports their specific derisking needs. With our broad capabilities and expertise, PFI is exceptionally positioned to address the evolving needs of pension schemes around the globe and in expanding access to retirement security.”
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