LV= has completed an £800 million longevity insurance contract with reinsurer, Swiss Re.
The agreement covers over 5,000 individuals who were members of the LV= Employee Pension Scheme as of 31st December 2011.
It also encompasses a broader population than previous pension market longevity transactions because it covers 1,000 members not yet retired, down to age 55.
Philip Moore, LV=’s chief financial officer, comments: “The ageing population and increases in life expectancy have created a need for better management of longevity risk across the insurance and pension industries.”
According to the insurer, the market is becoming more aware of longevity risk and this agreement is the first ever pension plan longevity contract that insures the exposure of members yet to retire.