Legal & General has completed a £4.6bn buy-in with the Ford Motor Company – the largest pension risk transfer announced this year.
This buy-in cover two schemes sponsored the company, the Ford Hourly Paid Contributory Pension Fund and the Ford Salaried Contributory Pension Fund.
The buy-ins were completes as one combined transaction, securing the benefits of over 35,000 retirees in total.
L&G has a long-established relationship with these pension schemes having provided investment management services to the schemes for the past decade.
This is the largest pension risk transfer transaction announced in 2025, and the second largest buy-in, in terms of premium size, that L&G has completed to date.
The trustees of the pension schemes were advice by Aon, and by the legal adviser Mayer Brown. Hogan Lovells also provided legal advice and Aptia provided administration support to the trustees.
Slaughter and May provided legal advice to L&G.
In total L&G has completed almost half of the 20 largest UK buy-ins and buyouts since 2007, securing more than £30bn across the transactions.
Ahead of the buy-in the trustees of these schemes 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 then paid the premiums through in-specie asset transfers, helping to minimise transaction costs.
L&G says this demonstrates how its integrated model can be a key differentiator in the de-risking market, with synergies between its asset management and PRT businesses.
This £4.6 billion buy-in builds on the strong performance L&G announced at its half year results, with L&G’s global PRT volumes for 2025 now at £11bn over the year to date.
It says the sector is well positioned for continued growth, with many schemes on the journey towards buyout. The company says it expects a market closer to £50 bn in 2026,
L&G CEO António Simões says: “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.”
Jonathan Wood, chair of trustees, adds: “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 schemes, 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.”
Aon partner Hannah Brinton adds: “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.”
