Standard Life completes £525m full buy-in with Skanska Pension Fund

Written by Callum Conway

18/12/2025

Skanska Pension Fund has completed a £525m full buy-in with Standard Life, securing the benefits of around 5,500 members.

The trustee of the Skanska Pension Fund worked alongside its corporate sponsor, Skanska UK plc, and parent company, Skanska AB, to complete the transaction, which also included the novation of the scheme’s existing longevity swap with Zurich Assurance Ltd.

The longevity swap has been in place since 2017, with reinsurance provided by SCOR.

Both the buy-in and the longevity swap novation were completed in October 2025.

LCP acted as lead transaction adviser and investment adviser to the trustee, while Reed Smith provided legal advice to the fund.

Standard Life was advised by Debevoise & Plimpton LLP and Eversheds Sutherland (International) LLP.

Skanska Pension Fund chair of the trustee, Harvey Francis, claimed the transaction marked the culmination of a long-term de-risking strategy.

“The trustee is delighted to have completed a full buy-in of the fund, securing all its members’ benefits for the future,” he continued.

“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 UK and Skanska AB.”

Echoing this, Skanska UK chief financial officer and executive vice president, Meliha Duymaz, said the buy-in delivered a positive outcome for both members and the employer.

“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,” she stated.

“We are proud to have secured members’ benefits for the long term while removing a significant risk from the company balance sheet.”

Meanwhile, Standard Life director of defined benefit solutions, Kieran Mistry, said the insurer’s experience with longevity swap novations supported a smooth execution.

“Standard Life was able to deliver attractive pricing and terms because the trustee, supported by Skanska and advised by LCP, followed a rigorous process with clear requirements,” she added.

LCP partner, Rachel Hirst, reiterated that a disciplined process and close collaboration between stakeholders helped achieve a strong outcome.

“Working closely with Skanska UK and Skanska AB representatives, the trustee followed a thorough and disciplined process, resulting in Standard Life putting forward a very attractive offering."

Zurich UK head of longevity risk transfer, Greg Wenzerul, added that the transaction demonstrated the flexibility of longevity swaps as a long-term de-risking tool.

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