LV= Employee Pension Scheme, Bournemouth, England, insured £800 million ($1 billion) in liabilities through a buy-in with Phoenix Life, said Huw Evans, chairman of the plan.
The deal converts an existing longevity swap, completed with insurer ReAssure in 2012, into a buy-in. Swiss Re reinsured the longevity swap and will continue to reinsure the liabilities following the change.
The buy-in covers all 4,100 retirees and about 200 participants that have not yet retired.
"This conversion is an important step in improving the security of all scheme member benefits as it removes substantial asset and market-related risks as well as longevity and other demographic risks associated with a significant group of members," Mr. Evans said in a news release.
Consultants Lane Clark & Peacock LLP and Redington advised both the trustees and Liverpool Victoria Financial Services, the sponsor of the £1.6 billion plan.
CMS Cameron McKenna Nabarro Olswang LLP provided legal advice to the trustees. Phoenix Life was advised by law firm Eversheds Sutherland.