Finance
Rolls Royce Sells UK Pension Fund to Pic in 4.3 Billion Pound Deal
Published by Global Banking & Finance Review®
Posted on August 10, 2025
1 min readLast updated: January 22, 2026
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Quick Summary
Rolls-Royce sold its UK pension fund to PIC for £4.3 billion, covering 36,000 pensions. This move simplifies its liabilities amid rising demand for bulk annuities.
Rolls-Royce Transfers UK Pension Fund to PIC in £4.3 Billion Deal
Overview of the Rolls-Royce Pension Fund Sale
(Reuters) -Aircraft engine maker Rolls-Royce sold its UK pension fund to Pension Insurance Corporation (PIC) in a 4.3 billion pound ($5.78 billion) deal, PIC said in a statement on Sunday.
Details of the Transaction
The deal will cover Rolls-Royce's entire outstanding liabilities to its workers, comprising the pensions of 36,000 people.
Impact on Stakeholders
"This is a win-win for all our stakeholders" Rolls-Royce CFO Helen McCabe said in the statement, adding that it is a step towards simplifying Rolls-Royce.
Market Trends in Pension Schemes
The transaction follows PIC's announced acquisition by Athora, pending regulatory approval. The deal was first reported by Bloomberg News earlier this week.
PIC specializes in defined benefit pension schemes, known as bulk annuities. Demand for bulk annuities has surged in the last few years as companies seek to shed defined benefit, or final salary, pension schemes from their balance sheets.
($1 = 0.7435 pounds)
(Reporting by Rajveer Singh Pardesi in BengaluruEditing by David Goodman, Elaine Hardcastle)
Key Takeaways
- •Rolls-Royce sold its UK pension fund to PIC for £4.3 billion.
- •The deal covers pensions for 36,000 people.
- •PIC is being acquired by Athora, pending approval.
- •Demand for bulk annuities is increasing.
- •The transaction simplifies Rolls-Royce's liabilities.
Frequently Asked Questions about Rolls Royce sells UK pension fund to PIC in 4.3 billion pound deal
1What was the value of the deal between Rolls-Royce and PIC?
The deal was valued at £4.3 billion ($5.78 billion).
2How many workers' pensions does the deal cover?
The transaction covers the pensions of 36,000 people.
3What is the significance of this deal according to Rolls-Royce?
Rolls-Royce CFO Helen McCabe stated that it is a win-win for stakeholders and a step towards simplifying the company.
4What type of pension schemes does PIC specialize in?
PIC specializes in defined benefit pension schemes, commonly known as bulk annuities.
5What recent acquisition is mentioned in relation to PIC?
The article mentions PIC's announced acquisition by Athora, which is pending regulatory approval.
