On the go: The UBS (UK) Pension and Life Assurance Scheme has extended its longevity swap with Zurich Assurance and Canada Life Assurance Company by £0.5bn.
This is the fund’s second transaction with Zurich and Canada Life, having already entered into a £1.4bn longevity swap with both parties in July 2020.
The longevity swap now covers roughly two-thirds of the pension scheme’s defined benefit liabilities, with around half of the new tranche of the swap relating to deferred members.
According to Mercer Investment Consulting, which acted as the lead commercial and investment adviser for the scheme, the swap was further adapted to cover the scheme’s DB deferred members over age 60, as well as unhedged DB current pensioners.
Richard Hardie, chair of the UBS (UK) Pension and Life Assurance Scheme trustee board, said: “This transaction is a significant milestone in our plan to reduce the uncertainties facing the DB section of our scheme as it approaches maturity.
“It adds considerably to the security of all DB members’ pensions. The longevity risk attaching to approximately two-thirds of the scheme’s DB liabilities has been removed.”
Allen & Overy acted as legal counsel to the trustee through the transaction. The trustee was also advised by FTI Consulting and Gowling WLG. Canada Life Reinsurance and Zurich took legal advice from Slaughter & May and Pinsent Masons, respectively.
This article first appeared on MandateWire.com
