UK insurer Legal and General Assurance Society Limited (L&G) has completed two buy-ins totalling £4.6 billion with pension schemes sponsored by Ford Motor Company Limited, the Ford Hourly Paid Contributory Pension Fund and the Ford Salaried Contributory Pension Fund.
It also builds on L&S’s strong half-year results performance, with the firm’s global pension risk transfer (PRT) volumes for 2025 now at £11 billion year to date.
This is the largest PRT transaction in the UK of 2025, representing L&G’s second-largest buy-in by premium size to date. L&G has completed almost half of the 20 largest UK buy-ins and buyouts announced since 2007, securing more than £30 billion across these transactions.
L&G explained, “The sector is well positioned for continued growth, with many schemes on the journey towards buyout and given our pipeline, we expect a market of closer to £50 billion in 2026, as seen in recent years.”
Aon was the lead transaction adviser, while Mayer Brown served as lead legal advisor. Hogan Lovells also provided legal advice, and Aptia provided administration support to the Funds’ Trustees. Lastly, L&G’s legal advisor was Slaughter and May.
As per the details of the transaction provided by the companies, the Trustees of the Funds prepared their investment strategies with Aon and the Ford in-house investment management team to align with insurer investment portfolios.
L&G provided a price lock linked directly to the Funds’ assets to ensure price certainty while the contractual terms were finalised. The Trustees paid the premiums through in-specie asset transfers, which helped to minimise transaction costs.
António Simões, Chief Executive Officer (CEO), L&G, commented, “This £4.6bn transaction puts us firmly on track to achieve our PRT growth targets. 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.”
Andrew Kail, CEO, Institutional Retirement, L&G, said, “We are delighted to have agreed a buy-in for these Funds, through a smooth and collaborative process that was delivered in a remarkably short timeframe. At the heart of our approach is a strong focus on customer service and member experience, and we look forward to supporting the scheme members through their retirement.
“Beyond our commitment to first-class service, what truly sets L&G apart is our ability to combine deep partnership and tailored solutions across both asset management and PRT. This is a great example of all parties working together to deliver a positive outcome for the Trustees and Sponsor, while securing the retirement benefits of tens of thousands of members.”
Jonathan Wood, Chair of Trustees, added, “Having worked towards this for many years, we are delighted to have achieved this significant further de-risking milestone, providing even greater security for our members. The outcome achieved is testament to the commitment and dedication shown over many years by the Trustees and Ford to support the Funds, as well as the skill and expertise of our advisers. We are delighted to extend our long-standing partnership with L&G through the buy-in for the Funds and look forward to working together to continue to support our members.”
Hannah Brinton, Partner, Aon, concluded, “It has been a privilege to have led advice to the Trustees on this landmark transaction. This continues to demonstrate that there are highly attractive insurance de-risking opportunities for large and well-prepared schemes, as well as the scope to negotiate bespoke terms to meet specific requirements.
“Effective and nimble decision making, as well as many months of detailed preparation, including readying the asset portfolio within the existing investment structure, ultimately enabled the Trustees to capture market opportunities and to secure an exceptional outcome for members.”
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