On the go: The £4bn Balfour Beatty Pension Fund has signed a £1.7bn longevity swap transaction with Zurich Assurance and Scor.
The longevity reinsurance transaction covers more than 15,000 members of the circa £3bn defined benefit section of the scheme, according to a statement.
Scor will take on 100 per cent of the longevity risk of the pensioners covered. Zurich will act as an intermediary insurer, adopting a “pass-through” structure that facilitates the risk transfer to Scor as the reinsurer.
Aon advised on the transaction, with legal advice provided by CMS to the trustee and by Pinsent Mason to Zurich. Insight Investment acts as collateral manager and collateral valuation agent on the deal.
Insight’s head of client solutions, Serkan Bektas, commented: “Longevity expectations have fluctuated significantly over the past two decades and managing longevity risk is understandably a major consideration for UK pension schemes today.”
This article first appeared on MandateWire.com
