Standard Life completes £525m full buy-in for Skanska Pension Fund, advised by LCP

The Trustee of the Skanska Pension Fund (“the Fund”), working closely with its corporate sponsor Skanska UK plc and parent company Skanska AB, has purchased a £525m full buy-in covering all of its c.5,500 members, with Standard Life.

The buy-in included the novation of the fund’s existing longevity swap which it held with Zurich Assurance Ltd, since 2017 (with reinsurance provided by SCOR). Both the buy-in purchase and longevity swap novation completed in October 2025.

LCP was the lead transaction adviser and investment adviser to the Trustee of the Fund and legal advice was provided by Reed Smith. Standard Life was advised by Debevoise & Plimpton LLP and Eversheds Sutherland (International) LLP.

Rachel Hirst, Partner, LCP, commented: “We are delighted to have advised the Trustee on this transaction. Working closely with Skanska plc and Skanska AB representatives, the Trustee followed a thorough and disciplined process, resulting in Standard Life putting forward a very attractive offering. The collaboration amongst all parties resulted in the smooth running of the process, despite its complexities, with Standard Life supporting a seamless execution.”

Harvey Francis, Chair of the Trustee for the Skanska Pension Fund, said: “The Trustee is delighted to have completed a full buy-in of the Fund, securing all its members benefits for the future. This has been possible after many years of careful management of the Fund’s assets and liability risks working closely with our advisers, and with the support of Skanska plc and Skanska AB.”

Meliha Duymaz, Chief Financial Officer & Executive Vice President, Skanska UK, added: “This purchase of a buy-in insurance policy with the assets of the Fund has provided an excellent outcome for our pension fund members and the Company. We have worked diligently with the Trustees to achieve this position and are proud to have secured the members’ benefits for the long term whilst removing a significant risk from the company balance sheet.”

Kieran Mistry, Director of Defined Benefit Solutions, Standard Life, added: "We’re really pleased to partner with the Trustee and Skanska to provide a secure home for their members. Standard Life was able to deliver attractive pricing and terms for this transaction because the Trustee, supported by Skanska and advised by LCP, followed a rigorous process with clear requirements. They delivered what we needed on time, allowing us to work with Zurich and SCOR to swiftly execute the transaction using our extensive experience supporting schemes with longevity swap novations."

Greg Wenzerul, Head of Longevity Risk Transfer, Zurich UK, commented “We were delighted to support the Trustee, party to a Zurich longevity swap since 2017, as they took the next step in their derisking journey. Completed to plan, the buy-in transaction demonstrates the flexibility of Zurich longevity swaps for long term risk management, and their wider value as a long term de-risking instrument. In being managed collaboratively by LCP, this transaction represented a great example of how efficiently these conversions can be executed, building on the experience that all parties have had of working together on similar transactions.”