Marvin OnumonuLegal & General (L&G) Assurance Society Limited has completed two buy-ins worth £4.6bn with Ford Motor Company Limited pension schemes.
The transaction covers the Ford Hourly Paid Contributory Pension Fund and the Ford Salaried Contributory Pension Fund, securing benefits for over 35,000 members.
Aon acted as lead transaction adviser to the trustees and Mayer Brown was lead legal adviser.
Hogan Lovells and Aptia also advised the trustees, while Slaughter and May advised L&G.
António Simões, CEO at L&G, said: “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.”
Andrew Kail, CEO of institutional retirement at L&G, said: “We are delighted to have agreed a buy-in for these Funds, through a smooth and collaborative process that was delivered in a remarkably short timeframe.
“At the heart of our approach is a strong focus on customer service and member experience and we look forward to supporting the scheme members through their retirement.
“Beyond our commitment to first-class service, what truly sets L&G apart is our ability to combine deep partnership and tailored solutions across both asset management and PRT.”
Kail added: “This is a great example of all parties working together to deliver a positive outcome for the Trustees and Sponsor, while securing the retirement benefits of tens of thousands of members.”
Jonathan Wood, chair of trustees, said: “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 Funds, 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.”
Hannah Brinton, partner at Aon, said: “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.”
