Aviva PLC, London, insured £1.7 billion ($2.1 billion) in liabilities through a buy-in with Aviva Life & Pensions U.K. Ltd., said a spokeswoman at Hymans Robertson, adviser on the deal.
Aviva secures $2.1 billion buy-in with Aviva Life & Pensions
Through its first buy-in deal, Aviva insured the defined benefit pension liabilities of about 1,500 current retirees of the plan and 4,300 participants who have yet to retire. In 2014, the £14.6 billion plan completed a £5 billion longevity swap with Swiss Re and SCOR.
"Combined with the existing longevity swap, this buy-in means that the scheme has now hedged a material amount of longevity and investment risk," said Brian Bussell, chairman of the plan's trustee in a news release.
Chief Investment Officer Jason Windsor added in the release: "This transaction capitalizes on Aviva's expertise in the pension de-risking market and builds on the strong funding position of the scheme."