Royal London has secured its first Bulk Purchase Annuity (BPA) transaction of 2025 with a £120 million agreement with Lufthansa UK Pension Trustee in January 2025 that insures Lufthansa Group’s three UK Defined Benefit pension schemes in one integrated transaction.
Each of the pension schemes had its own unique features but the parties worked together to run the transactions efficiently, offering bespoke contractual terms where appropriate.
The transaction, signed in the first week of January, marks a positive start to the year and with further business in exclusive negotiations, it reflects Royal London’s ambitions in the BPA market. As the only mutual in the BPA market, Royal London offers Trustees a new choice and has put its commitment to member care at the heart of the proposition.
Commenting, Beatrice Male, BPA Origination Lead at Royal London said: “We’re delighted that Lufthansa and their UK pension trustee have placed their faith in Royal London at this stage in our BPA journey. We were clear with the trustees throughout that, as a mutual, we see brilliant customer care for their 1,200 members over the decades ahead as critically important and that appears to have resonated really well with them. This transaction at the start of 2025 continues the momentum we were enjoying in 2024 and we look forward to welcoming more pension scheme trustee members to Royal London in the months ahead.”
Clive Grimley, Chair of Trustees, Lufthansa UK Pension Trustee Limited said: “The Trustee is delighted to have worked with Royal London to deliver long-term benefit security for our pension scheme members”
Adolfo Aponte, Managing Director, Cardano, a business of Marsh McLennan, said: “We are very pleased to have supported the Trustee of the three Lufthansa UK pension schemes to deliver a positive result for their members. This three-in-one transaction pushed the boundaries of what was thought possible in this segment of the market, demonstrating the value of buying-in the schemes together.”
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