Lloyds Banking Group enters into three further longevity transactions

Core Insights - Lloyds Banking Group Pensions Trustees Limited has completed three new longevity insurance and reinsurance transactions, securing £4.8 billion of pension liabilities against unexpected increases in member life expectancy [1][3]. Group 1: Transaction Details - The new arrangements cover pensioner liabilities across three major schemes: £3.1 billion in the Lloyds Bank Pension Scheme No.1, £0.7 billion in the Lloyds Bank Pension Scheme No.2, and £1.0 billion related to the HBOS Final Salary Pension Scheme [3]. - These transactions follow previous arrangements made in March 2025, which covered an additional £5.1 billion of pensioner liabilities [3]. Group 2: Insurance and Reinsurance Structure - The transactions are structured as insurance policies with Rothesay Life Plc as the insurer, with reinsurance provided by a major global reinsurer for the Lloyds No.1 and No.2 schemes, and by a subsidiary of Prudential Financial, Inc. for the HBOS scheme [4]. Group 3: Statements from Key Individuals - Vicky Paramour, Trustee Director, emphasized the successful completion of these transactions, which reduce longevity risk and enhance security for all members [5]. - Ben Howe from Rothesay highlighted the high demand for longevity protection in the UK pension risk transfer market, indicating a collaborative approach in completing the arrangements [7]. - Rohit Mathur from PFI expressed satisfaction in partnering with Lloyds Banking Group Pensions Trustees on tailored longevity solutions to meet their de-risking needs [7]. Group 4: Impact on Pension Benefits - The decision to enter these transactions will not alter the pension benefits paid to members, who will continue to receive their pensions as normal [6]. Group 5: Advisory Support - Advisors on the deal included WTW as the lead advisor and A&P Shearman [7].