Published by Global Banking & Finance Review®
Posted on August 8, 2025
2 min readLast updated: January 22, 2026
Add as preferred source on GoogleRolls-Royce is close to transferring £4 billion in pension liabilities to Pension Insurance Corporation, enhancing its financial position.
(Reuters) -UK's Rolls-Royce is close to announcing a deal with insurer Pension Insurance Corporation (PIC) to offload almost 4 billion pounds ($5.37 billion) in pension liabilities from the aircraft engine maker's balance sheet, Bloomberg News reported on Friday.
The deal may be announced as soon as this month but talks could still be delayed or fall apart, the report added, citing people familiar with the matter.
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.
According to Rolls-Royce's 2024 annual report, its funded obligations under the so-called UK defined benefit schemes stood at 3.96 billion pounds, with associated assets of 4.74 billion pounds.
In July, PIC agreed to a 5.7 billion pounds takeover offer from specialised life insurance group Athora.
Rolls-Royce and PIC declined to comment on the Bloomberg report.
($1 = 0.7444 pounds)
(Reporting by Raechel Thankam Job in Bengaluru; Editing by Harikrishnan Nair and Saumyadeb Chakrabarty)
Rolls-Royce is close to offloading nearly 4 billion pounds, which is approximately $5.37 billion, in pension liabilities.
Rolls-Royce is negotiating with the Pension Insurance Corporation (PIC) to offload its pension liabilities.
PIC specializes in defined benefit pension schemes, commonly referred to as bulk annuities.
According to Rolls-Royce's 2024 annual report, its funded obligations under UK defined benefit schemes stood at 3.96 billion pounds.
In July, PIC agreed to a 5.7 billion pounds takeover offer from the specialized life insurance group Athora.
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