Ford has completed two pension buy-ins worth a combined £4.6 billion with Legal & General, marking the largest UK insurance transaction by value announced in 2025 and securing benefits for more than 35,000 retirees.
Landmark Transaction
Legal & General Assurance Society Limited (L&G) confirmed on 27 October 2025 that it had finalised two pension buy-in agreements with schemes sponsored by Ford Motor Company Limited. The combined value of the deals—£4.6 billion—makes this the largest pension risk transfer (PRT) transaction announced in the UK this year, and the second-largest buy-in by premium size ever completed by L&G.
The buy-ins cover the Ford Hourly Paid Contributory Pension Fund and the Ford Salaried Contributory Pension Fund, securing the retirement benefits of over 35,000 members.
Securing Member Benefits
The transaction ensures that the pension schemes’ liabilities are now backed by L&G’s balance sheet, providing long-term security for retirees. The trustees of the schemes worked with advisers Aon and legal counsel Mayer Brown and Hogan Lovells to structure the deal.
L&G offered a price lock mechanism linked to the schemes’ assets, ensuring cost certainty during the contract finalisation. Premiums were paid via in-specie asset transfers, minimising transaction costs and aligning investment strategies with insurer portfolios.
Long-Standing Partnership
L&G has a decade-long relationship with Ford’s UK pension schemes, having previously provided investment management services. This latest deal builds on that partnership and reflects the growing trend of large corporates seeking to de-risk pension obligations through bulk annuity transactions.
Industry Significance
The deal highlights the continued momentum in the UK’s pension risk transfer market, with L&G reporting £11 billion in global PRT volumes year-to-date. Analysts note that such large-scale transactions underscore the maturity of the UK bulk annuity market and the appetite of corporates to secure member benefits amid volatile economic conditions.
Outlook
For Ford, the buy-ins represent a major step in de-risking its UK pension liabilities, while for L&G, the transaction cements its position as a leading player in the global PRT sector. With demand for pension buy-ins expected to remain strong, industry observers predict further record-breaking deals in the months ahead.
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