The Bank of America Merrill Lynch UK Pension Plan has insured benefits for 915 pensioner members in a £400m buy-in with Scottish Widows.
The bank's largest pension scheme made the step as part of a long-term de-risking journey, with the deal helping to improve its long-term funding position. The scheme was advised by Aon and its Bulk...
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.
The Electricity North West Group of the Electricity Supply Pension Scheme (ESPS) has invested in an £805m pensioner buy-in with Scottish Widows.
Zurich has agreed to insure £800m of longevity risk for the pensioners of a FTSE 100-sponsored pension scheme.