Lloyds Banking Group Pensions Trustees Limited has agreed three further longevity hedging transactions with Rothesay Life as the insurer, protecting a combined £4.8bn of liabilities.

The deals cover £3.1bn of liabilities in the Lloyds Bank Pension Scheme No.1, £0.7bn in the Lloyds Bank Pension Scheme No.2, and £1bn in the HBOS Final Salary Pension Scheme.

The first two of these transactions closed in December 2025 and the final one in September 2025.

All three of the transactions are structured as insurance policies with Rothesay Life 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 US-based Prudential Financial (PFI) for the HBOS scheme.

The deals, which will protect the Lloyds Banking Group pension schemes from the cost of unexpected increases in the life expectancy of its members, build on the two longevity swaps previously announced in March 2025, which covered a further £5.1bn of pensioner liabilities.

Commenting on the news, trustee director and investment and funding committee chair, Vicky Paramour, said: “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.”

WTW lead adviser to the trustee, Matt Wiberg, also emphasised the importance of collaboration, stating: “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.”

A&O Shearman legal adviser, Kate McInerney, also held up the deals as demonstration of "what continues to be an active market for longevity de-risking by pension schemes.”

This was echoed by Rothesay head of reinsurance, Ben Howe, who highlighted the deal as evidence of 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," he stated.

Adding to this, PFI head of international reinsurance, Rohit Mathur, 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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