AstraZeneca Pension Fund Trustee, Cheshire, England, has entered into a £2.5 billion ($4.1 billion) longevity swap with Deutsche Bank, confirmed Matt Wilmington, partner at Aon Hewitt, the lead adviser to the fund.
Mr. Wilmington said the deal covers about 40% of the total liabilities of the fund, which has $6.9 billion in assets, and 10,000 of the fund's current pensioners.
In a statement, Mr. Wilmington said: “It was clear during the negotiations for this transaction that the capacity and appetite of the global reinsurance market to take on pension fund longevity risk is ever increasing.
“Together with Deutsche Bank we ran a competitive process, including the established reinsurers as well as a number of new market entrants, which has enabled the fund to transact at the best available terms.”
Alexandra Lynch, spokeswoman for the pension fund, could not be reached by press time.