Legal and General Assurance Society Limited (L&G) and the Trustee of the UBS (UK) Group Pension Plan have announced the successful competition of a £1.7 billion buy-in covering the UBS Section of the Plan, securing the benefits of more than 7,000 members.
According to the announcement, the agreement is the largest announced UK pension risk transfer deal of 2026 to date and marks a significant milestone in the Plan’s long-term strategy to further strengthen the security of members’ retirement benefits.
The transaction also included the successful novation of the Plan’s existing longevity hedge with Zurich to L&G.
The deal follows a £900 million buy-in completed in 2024 for the Credit Suisse Section of the Plan. With this latest agreement, both sections of the Plan have now fully secured member benefits with L&G.
UBS AG, the sponsoring employer of the plan, collaborated closely with the Trustee throughout the process under defined objectives and timelines.
Ahead of approaching the market, the Trustee conducted extensive data preparation and aligned the Plan’s investment strategy with insurer pricing to facilitate execution.
Chris Martin, Chair of the UBS (UK) Group Pension Plan and Trustee Director at Independent Governance Group: “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.”
L&G was selected following a competitive process, based on its scale, execution certainty, competitive pricing, and high-quality member experience. Trustee and UBS representatives visited L&G’s customer service teams ahead of completion, while an innovative price lock provided price certainty before the transaction.
Gareth Mee, CEO, Institutional Retirement, L&G, commented: “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.”
Aon worked as risk settlement adviser to the Trustee and UBS, while LCP provided investment advisory services. Marsh offered actuarial and covenant guidance through its covenant advisory team.
Like Minds managed the member communications strategy and delivery. Sackers, supported by Gowlings, served as lead legal adviser to the Trustee, while Hogan Lovells Cadwalader provided legal advice to UBS, and Slaughter and May advised L&G.
