Longevity swaps

UK schemes have hedged longevity risk for 10% of pensioner members after conducting a record £12.4bn in risk transfer deals last year, according to Hymans Robertson research.

Rolls Royce Holdings has more than halved its post-retirement deficit to £397m and continued its concerted programme of de-risking.

Legal & General intends to extend the longevity swap market to cover smaller schemes, after completing a £1bn deal with the Pilkington Superannuation Scheme.

Pilkington Superannuation Scheme has insured £1bn of liabilities against unexpected longevity increases, in a deal which confirmed 2011 as a record year for the de-risking market

In the second part of our run-down of the most read Professional Pensions Online articles in 2011, we look at the top 20 news stories during the year - starting with those in eleventh to twentieth place.

Rolls-Royce and the trustees of its pension fund have agreed a longevity swap to cover around £3bn of liabilities.

Barnett Waddingham has been chosen by investment bank UBS to provide administration and actuarial oversight services for its longevity swaps service.

Longevity swaps leave schemes open to the risk that younger members live twice as long in retirement than current pensioner members, Punter Southall warns.

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Scheme risk transfer deals totalling £1.4bn were completed last quarter with five providers concluding business in excess of £150m, Hymans Robertson analysis finds.