Derisking projected to take off in 2010

Hymans’ Managing pension scheme risk report predicted more than £10bn worth of new deals in 2010, with a further £5bn in buyouts and buy-ins.

The document added the market for all forms of derisking is likely to “grow significantly” in the coming years.

Hymans’ senior liability management specialist James Mullins said the prediction was down to the cost of derisking coming down this year.

“Market conditions mean risk transfer deals are more affordable for many UK pension schemes, and schemes are keen to manage away as much risk as they can,” he said.

“There is a snowball effect – the more pension schemes that tackle risk, the more pressure there is on other schemes to follow suit.”

He went on to claim the immediate future of buyout and longevity swaps would continue to be driven by blue chip firms.

“It’s interesting to note several FTSE 100 and FTSE 250 companies have completed risk transfer deals for their pension schemes in recent months,” he added.