The £800m Hays Pension Scheme has completed a £270.6m buy-in with Canada Life, insuring all future benefits for pensioner members.
The bulk annuity transaction is Canada Life's first announced for 2018 after a quiet first half of the year, and the entire deal, completed 6 August, was funded using the recruitment firm's scheme's existing...
Pension Insurance Corporation (PIC) insured £7.2bn of scheme liabilities over the course of 2019, recording more new business than in any year prior.
Longevity swap transactions will hit a record-breaking level of £25bn this year, Willis Towers Watson has predicted.
Schemes are increasingly looking at longevity hedging as part of their de-risking process, according to a survey by Insight Investment.
Insurers are now able to accommodate up to £30bn of bulk annuity transactions every year with no impact on pricing, according to Lane Clark & Peacock (LCP).
Increasing demand for global longevity reinsurance could lead to higher bulk annuity prices but less exact matching for longevity hedging, says Mercer.