Lloyds Banking Group Pensions Trustees Limited has completed three new longevity swap transactions with Rothesay Life Plc, covering £4.8 billion of liabilities, with reinsurance capacity to support the deals concurrently provided by major global reinsurers and an insurance subsidiary of US-based Prudential Financial, Inc.Each of the three new longevity swap and reinsurance arrangements covers longevity risks related to pensioners in different Lloyd’s Banking Group pension schemes.These new transactions entered into in 2025 come after two longevity swap and reinsurance arrangements announced back in March 2025 that covered £5.1 billion of liabilities for two pension schemes.The transactions provide Lloyds Banking Group pension schemes with protection for the cost of unexpected increases in the life expectancy of its members.

The new longevity swap and reinsurance arrangements announced this week cover £3.1 billion of pensioner liabilities in the Lloyds Bank Pension Scheme No.1, £700 million of liabilities in the Lloyds Bank Pension Scheme No.2 and £1 billion of liabilities in the HBOS Final Salary Pension Scheme.The first two transactions were completed this month, in December 2025, the third for the HBOS scheme was actually completed in September this year.Each of the three new longevity swap transactions were structured as insurance policies with Rothesay Life Plc as the insurer, while reinsurance was provided by unnamed global reinsurers for the Lloyds No.1 and No.2 schemes, while an insurance subsidiary of US based Prudential Financial, Inc., a large, multi-national financial services company reinsured the HBOS scheme arrangement.

Since 2020, the Lloyds Bank pension Trustee has now protected some £25 billion of liabilities associated with longevity risk in its range of pension schemes.Vicky Paramour, Trustee Director and Chair of the Investment & Funding Committee, commented “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.” Matt Wiberg, WTW, lead adviser to the Trustee, also said, “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.” Kate McInerney, A&O Shearman, legal adviser to the Trustee, added, “We are delighted to have advised the Trustee on these transactions, and to have been able to continue helping the Trustee reduce longevity risk across the Lloyds’ schemes.These are significant transactions in what continues to be an active market for longevity de-risking by pension schemes.” Ben Howe, Head of Reinsurance at Rothesay, said, “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, further stated “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.” Longevity swap activity has continued to accelerate towards the end of 2025, with now .That equates to somewhere north of UK £31 billion in longevity swap deals backed by reinsurance capital this year, which is a record for the sector by our reckoning and demonstrates the ongoing need for large amounts of reinsurance risk capital to back pension longevity liabilities.

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