Longevity swaps

Strong asset gains and the closure of defined benefit schemes have made pensioner buy-in prices their most attractive since 2008, according to LCP research.

Pension schemes are expected to shift a further £20bn of liabilities to insurance companies and banks over the next 18 months, according to Hymans Robertson.

The trustees of the Pall (UK) Pension Fund have completed a longevity hedge for non-retired members with J.P. Morgan.

Longevity swaps allow schemes to remove risk without the need to transfer assets and reduce equity positions, delegates heard.

Paternoster has been put up for sale, with its original backers facing the loss of more than half their £500m equity investment.

A record £12.5bn risk transfer deals were done in the first half of the year and a quarter of major firms will de-risk by 2012, Hymans Robertson predicts.

Babcock International has appointed Northern Trust to provide £2bn in global custody, transition management, investment accounting and performance measurement services for the group's pension fund assets.