Cosworth Racing pension scheme completes £96m buy-in with L&G

Written by Adam Cadle

05/11/2025

The Cosworth Racing Limited Pension Fund has completed a £96m buy-in with Legal & General (L&G), securing the pension benefits of over 1,000 retirees and deferred members.

The deal marks L&G's second buy-in with a fund sponsored by the Ford Motor Company, announced in recent months, building on the £4.6bn buy-in for two of the sponsor’s other pension schemes, which marked the largest deal of 2025 yet.

The group stated that the transaction further strengthened the relationship between L&G and the sponsor in both the UK and the US, which has also seen L&G’s asset management business provide investment services to the fund.

This enabled the trustee to settle the transaction premium through the transfer of their pooled funds, ensuring an efficient asset transfer that incurred no additional costs.

The trustee, Pan Trustees, was advised by Aon as lead transaction adviser, scheme actuary and investment consultant, with Gunnercooke providing legal advice, while Slaughter and May provided legal advice to L&G.

Pan Trustees professional trustee and trustee of the fund, Andrew Firbank, highlighted the deal as a "significant milestone" for the fund, bringing greater security for members through the buy-in.

"This is the culmination of many years of preparation and intensive data work, building on the strategic merger of different schemes into a single pension fund in 2012," he continued.

"The trustee has greatly appreciated the proactive and highly engaged support from Ford and the commitment and dedication of our advisers to achieve such a great outcome on behalf of our members."

L&G institutional retirement CEO, Andrew Kail, also emphasised the importance of collaboration, stating: “We are pleased to have helped Ford and the trustee secure the retirement benefits of the members in this fund.

"This transaction illustrates the complementary nature of L&G’s businesses, with our asset management division providing investment management services to the fund over the past decade, and our institutional retirement business having now completed three buy-ins with Ford.

"The close collaboration has enabled a seamless transaction process with positive outcomes for the fund’s members.”

Adding to this, Aon partner, Hannah Brinton, said: “Flexible and nimble governance, as well as focused preparation and an accelerated process, enabled the fund to move quickly alongside the larger Ford transaction.

"We worked with the trustee and Ford to access exceptional pricing and terms that are not generally available on transactions of this size, ultimately delivering a great outcome for the trustee, Ford and the fund members.”

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