Lloyds Banking Group Pensions Trustees Limited has entered three new longevity insurance and reinsurance transactions, safeguarding a further £4.8 billion of pension liabilities against the risk of unexpected increases in member life expectancy.
The new arrangements cover pensioner liabilities across three major schemes. A £3.1 billion in the Lloyds Bank Pension Scheme No.1, and a £0.7 billion in the Lloyds Bank Pension Scheme No.2 transactions closed in December 2025.
A £1.0 billion related to the HBOS Final Salary Pension Scheme closed in September 2025.
This follows the Trustee announcing two longevity insurance and reinsurance arrangements in March 2025, which covered a further £5.1 billion of pensioner liabilities.
The transactions are structured as insurance policies with Rothesay Life Plc, acting as the insurer.
Reinsurance for the Lloyds No.1 and No.2 schemes was provided by a major global reinsurer, while HBOS scheme was reinsured by a subsidiary of the US-based Prudential Financial, Inc. (PFI).
Vicky Paramour, Trustee Director and Chair of the Investment & Funding Committee, stated: "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."
These latest transactions follow previous insurance and reinsurance arrangements that Lloyds Banking Group Pensions Trustees Limited entered between 2020 and 2025, in total covering over £25 billion of liabilities across the Lloyds Banking Group pension schemes.
According to the announcement, the decision to enter these transactions will not change the pension benefits that will be paid to members of the Schemes.
All pensioners will continue to receive their pensions each month as normal, and these will continue to be paid by the Schemes.
Ben Howe, Head of Reinsurance at Rothesay, commented: "We are delighted to continue to partner with the Trustee and reinsurers to provide these de-risking solutions. Within a busy pension risk transfer market, the transactions demonstrate 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."
Rohit Mathur, Head of International Reinsurance at PFI, 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."
Advisors on the deal included WTW, as the lead advisor, and A&P Shearman.
For more information on these and more longevity insurance and reinsurance transactions, visit our sister publication, Artemis.