Standard Life, in partnership with its corporate sponsor Skanska UK plc and parent company Skanska AB, has completed a fully subscribed £525 million trusteeship of the Skanska Pension Fund (Fund), covering all approximately 5,500 members.
The transaction includes the renewal of an existing longevity swap the fund has had with Zurich Assurance Ltd since 2017 and is reinsured by SCOR. Both buy-in and long-term swap updates are completed in October 2025.
LCP serves as lead transaction advisor and investment advisor to the fund trustees, with legal advice provided by Reed Smith LLP.
Standard Life was advised by Debevoise & Plimpton LLP and Eversheds Sutherland International LLP.
Harvey Francis, Chairman of the Skanska Pension Fund Trustees, said: “The Trustees are pleased to have completed full subscription of the Fund, ensuring future benefits for all members. We have been able to achieve this over many years, working closely with our advisers to carefully manage the asset and liability risks of the Fund, and with the support of Skanska plc and Skanska AB.”
Meliha Duymaz, Chief Financial Officer and Executive Vice President of Skanska UK, commented: “This purchase of a buy-in policy with fund assets provides an excellent result for our pension fund members and the company. We worked diligently with the trustees to achieve this and are proud to have secured the long-term interests of our members while removing significant risk from the company’s balance sheet.”
Rachel Hirst, partner at LCP, said: “We were delighted to advise the trustees on this transaction. Working closely with representatives from Skanska plc and Skanska AB, the trustees followed a thorough and rigorous process that resulted in a highly attractive product from Standard Life. Although the process was complex, collaboration between all parties made the entire process run smoothly, with Standard Life supporting a seamless execution.”
Kieran Mistry, Director of Defined Benefit Solutions at Standard Life, added: “We are extremely pleased to be working with the trustees and Skanska to provide a secure home for their members. Standard Life was able to offer attractive prices and terms for this transaction because the trustees, with the support of Skanska and advice from LCP, followed a rigorous process and clear requirements. They delivered what we needed on time, allowing us to work with Zurich and SCOR Working together, we leverage our extensive experience to support long-term swap programs and rapidly execute trading innovations.”
Greg Wenzerul, head of longevity risk transfer at Zurich UK, said: “We are pleased to support the trustee, who has been a participant in Zurich longevity swaps since 2017, as they take the next step in their de-risking journey. The buy transaction completed as planned demonstrates the flexibility of Zurich longevity swaps in long-term risk management, as well as their wider value as a long-term de-risking tool.” In a report sponsored by LCP Managed collaboratively, this transaction is a good example of how efficiently these transformations can be executed based on the parties’ experience working together on similar transactions.”
