British Airways’ Airways Pension Scheme has reached a long life swap transaction with Metropolitan Tower Life Insurance coverage Firm, a subsidiary of MetLife, and Zurich Assurance (Zurich UK).
The Airways Pension Scheme is a company outlined profit pension scheme for British Airways members.
This deal goals to switch the longevity threat related to £340m of the scheme’s liabilities, providing enhanced safety for its members.
The longevity insurance coverage coverage is an association between the scheme’s Trustees and Zurich UK, with a corresponding reinsurance association between Zurich UK and MetLife with Zurich UK’s pass-through resolution.
This pass-through resolution permits MetLife to imagine the longevity threat for about 1,100 scheme members, sharing mutual credit score threat publicity with the trustees.
The transaction is designed to be a part of the scheme’s funding portfolio, offering revenue in situations the place members outlive present life expectancy projections.
Entry probably the most complete Firm Profiles
available on the market, powered by GlobalData. Save hours of analysis. Achieve aggressive edge.
Firm Profile – free
pattern
Thanks!
Your obtain e mail will arrive shortly
We’re assured in regards to the
distinctive
high quality of our Firm Profiles. Nevertheless, we would like you to take advantage of
helpful
choice for your small business, so we provide a free pattern that you would be able to obtain by
submitting the beneath kind
By GlobalData
WTW served because the lead adviser for the trustees of the Airways Pension Scheme in the course of the transaction.
The trustees obtained authorized steering from Sackers and Kramer Levin, whereas MetLife and Zurich UK had been suggested by Eversheds Sutherland and Slaughter & Could, respectively.
Zurich UK Longevity Danger Switch head Greg Wenzerul stated: “We imagine that the standardisation out there by means of use of the Zurich platform, which has now been used with the overwhelming majority of longevity reinsurers, offers a chance for smaller schemes to transact in an environment friendly and more and more standardised method.”
WTW trustees lead adviser Shelly Beard stated: “That is the second longevity swap introduced in 2024 overlaying lower than £1bn of liabilities, and the fifth lately to incorporate non-pensioners, which matches to indicate that hedging longevity threat on this manner is an possibility out there to schemes of all styles and sizes.”
