Aviva Agrees To Record $8.4B Pension Longevity Swap

Law360, New York (March 6, 2014, 6:58 PM EST) -- In the largest pension swap to date, U.K. insurer Aviva PLC said Thursday that it had agreed to a record-setting longevity swap worth £5 billion (US$8.4 billion) for its defined-benefit staff pension scheme, transferring the risk of about 19,000 members to three reinsurers.

The swap, described as the largest ever undertaken with a pension scheme, removes about one-third of Aviva Staff Pension Scheme’s longevity risk by transferring the risk of scheme members living longer than expected from the pension scheme to the reinsurance market, according to...
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