The trustee of the UBS (UK) Group Pension Plan has completed a £1.7bn bulk purchase annuity buy-in with Legal & General. The transaction covers the UBS Section of the plan, secures the benefits of more than 7,000 members, and novates the plan’s existing longevity hedge with Zurich to L&G.
The deal builds on the Plan’s existing relationship with L&G, following a £900m buy-in completed for the Credit Suisse Section of the Plan in 2024. Both sections of the Plan have now secured members’ benefits with L&G.
“This is a significant transaction for the Plan and we are delighted that all Plan members now have their pensions secured by a major UK life insurance company. It is also a major milestone for the sponsor which has now fully de-risked both Sections of the Plan. IGG is delighted to have completed this transaction. I want to thank L&G for their support as well as our advisers Aon, Sackers, Marsh, LCP and Gowlings for their advice and input. The excellent and collaborative working relationship with the Bank as sponsor for the Plan has also been critical in delivering this next step in benefit security for our members,” said Chris Martin, Chair of the UBS (UK) Group Pension Plan and Trustee Director at Independent Governance Group.
“This transaction reflects the confidence that trustees and sponsors continue to place in L&G and demonstrates the strength of our proposition in an increasingly sophisticated market. Building on the relationship established through the plan’s 2024 buy-in, we worked closely with the trustee, UBS and their advisers to deliver a solution aligned with the Trustee’s objectives, securing members’ benefits while also addressing the plan’s existing longevity hedge as part of the wider transaction. The trustee’s decision to work with L&G again demonstrates the value we can deliver through execution certainty, competitive pricing and long-term member experience. As the UBS members move into the next stage of their journey, the trustee can be confident not only in the financial security we provide, but also in the service, support and long-term commitment to members from L&G in the years ahead,” added Gareth Mee, CEO, Institutional Retirement, L&G.
Aon worked as risk settlement adviser to the trustee and UBS, while LCP provided investment advisory services. Marsh acted as plan actuary and provided covenant advice through its covenant advisory team. Like Minds managed the member communications strategy and delivery. Sackers acted as lead legal advisers to the trustee, with support from Gowlings. Hogan Lovells Cadwalader provided legal advice to UBS, while Slaughter and May advised L&G.
“The successful conclusion of this phase of the project is the product of many months’ work. The terms, which included carefully negotiated, bespoke provisions and the restructuring of an existing longevity swap, represent an excellent outcome for all parties. We are proud of Sackers’ involvement, which drew on the firm’s deep bench of specialists to support the trustee and the bank. The collaborative approach taken by the trustee and bank advisory teams and, of course, L&G, was a model of good industry practice,” said Ralph McClelland, Partner at Sackers.
“This transaction, achieved following a highly competitive process and involving the successful and cost-effective restructure of the plan’s existing longevity swap, marks a key step in the plan’s de-risking journey. Importantly, the transaction was structured to preserve many of the features that members value most, highlighting how the insurance market can deliver strong outcomes for schemes and members alike,” added John Baines, Senior Partner at Aon.
