Nationwide Pension Fund, Swindon, England, insured £1.7 billion ($2.1 billion) in liabilities through a longevity swap, said Tom Scott, partner in Aon's risk settlement group.
The latest deal covers 7,000 plan participants in the U.K., whose liabilities were insured by Zurich Assurance and, in turn, reinsured by Prudential Financial.
The pension fund has £7 billion in assets.
"This transaction is an important step in ensuring that members' benefits are secured against unexpected increases in life expectancy. This is great news for the fund and its members, transferring risk and helping to further protect our members' pensions. We as a trustee board are delighted to have taken this additional step on our long-term derisking journey," Catherine Redmond, trustee board chairwoman, said in the release.
Aon advised the trustees on the deal, alongside law firm Sacker & Partners. Prudential Financial was advised by law firm Willkie Farr & Gallagher, and Zurich was advised by law firm Slaughter and May.
The pension fund's plan sponsor, Nationwide Building Society, insured £172 million through a buy-in with Canada Life in May 2022.