Lufthansa agrees 'three-in-one' pension buy-in with Royal London for £120m

Written by Callum Conway

03/02/2025

Lufthansa UK Pension Trustee Limited has secured a £120m agreement with Royal London, which insures Lufthansa Group’s three UK defined benefit (DB) pension schemes in one integrated transaction.

Whilst each of Lufthansa's pension schemes has unique features, the parties worked together to run the transactions efficiently, offering bespoke contractual terms where appropriate. Cardano supported the trustee of the schemes in completing the deal.

The transaction also marks Royal London's first bulk purchase annuity transaction of 2025 and was highlighted by the group as demonstration of its ambitions in the bulk purchase annuity market, with further business currently in exclusive negotiations.

Commenting on the deal, Royal London BPA origination lead, Beatrice Male, said: “We’re delighted that Lufthansa and their UK pension trustee have placed their faith in Royal London at this stage in our BPA journey.

"We were clear with the trustees throughout that, as a mutual, we see brilliant customer care for their 1,200 members over the decades ahead as critically important and that appears to have resonated really well with them.

“This transaction at the start of 2025 continues the momentum we were enjoying in 2024, and we look forward to welcoming more pension scheme trustee members to Royal London in the months ahead.”

Lufthansa UK pension trustee limited chair of trustees, Clive Grimley, added: “The trustee is delighted to have worked with Royal London to deliver long-term benefit security for our pension scheme members.”

Cardano managing director, Adolfo Aponte, also commented on the transaction: “We are very pleased to have supported the trustee of the three Lufthansa UK pension schemes to deliver a positive result for their members.

"This three-in-one transaction pushed the boundaries of what was thought possible in this segment of the market, demonstrating the value of buying in the schemes together.”

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