First Longevity Swap for Active Pension Plan Members Enabled by JP Morgan

JP Morgan recently assumed 70 million pounds of longevity risk through a longevity swap that covers the lives of active members of a UK-based defined benefit pension plan.

This is the first longevity swap that covers active pension plan participants.  Previous deals have focused on retired pension plan members.

The longevity swap is based on JP Morgan's LifeMetrics longevity index and it has a 10 year term.  The index-based swap is reportedly a better vehicle for dealing with active pension plan members.

The UK-based Pall Pension fund has 1,800 members and approximately 120 million pounds in assets.

Source: Reuters

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